Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In just one day, a wave of forced liquidations caused by Bitcoin wiped out $347 million from leveraged positions, and the structure of these liquidations speaks louder than the total amount. This is a market repositioning event rather than random volatility, and long bets accounted for about $233 million of the wipeout, so traders who had bet on an upside continuation were caught off guard when Bitcoin stalled and rolled over due to resistance.
Shorts injection
Another $113 million were contributed by shorts, demonstrating that this was a violent shakeout on both sides rather than a clear directional move, and when both sides are affected, it indicates instability and a period of transition, during which liquidity is being extracted before the next significant trend takes hold.
Bitcoin is in a precarious position in terms of price, as BTC fell back toward the upper-$80,000 area, where buyers had previously tried to establish support after failing to hold above significant short-term moving averages. Momentum is the issue, because each push-up is being sold more quickly than the last and rallies are weaker, which is a typical example of late-stage remedial behavior.
Everything is behind Bitcoin
Bitcoin continues to be the focal point of market stress, according to the liquidation heatmap, and at $135 million, Bitcoin alone makes up a far larger share of all liquidations than the majority of other cryptocurrencies. Ethereum comes in second with about $51 million, but the difference is significant because Bitcoin is the main battlefield due to the concentration of leverage.
Data at the exchange level adds another level, as the biggest liquidation flows were absorbed by Binance and Hyperliquid, indicating aggressive derivatives positioning as opposed to slow spot distribution. Leverage unwinding, not a quiet investor exit, is what's happening here, and that distinction is important.
Liquidation-driven bloodbaths typically reset rather than end markets, and volatility frequently compresses prior to the subsequent directional move after excessive leverage is flushed. The risk is that if support levels collapse, liquidation cascades could start feeding on themselves, and the key zone for Bitcoin is currently between $86,000 and $88,000.
By maintaining that range, the structure is stabilized, and this becomes a purge, whereas if you lose it, forced selling will occur again. The market is moving, but it is cleaning rather than trending, and what Bitcoin does at support will determine whether this turns into a foundation or a collapse.
Arman Shirinyan
Yuri Molchan
Alex Dovbnya
