More than $400 million were lost in the past day, making this one of the most severe liquidations the cryptocurrency market has seen in recent weeks. A crucial support level was broken by Bitcoin, which had been trading above $113,000, and it fell toward $111,800, endangering its short-term stability.
The liquidation heatmap indicates that Ethereum was the most severely affected, with over $178 million liquidated, followed by Bitcoin ($57 million) and Solana ($24 million). Additionally, there were notable forced closures of altcoins like Dogecoin and XRP, which indicated general market weakness.
More than 128,000 traders were liquidated overall, with long positions suffering the most wipeouts ($333 million versus $73 million for short positions). This disparity demonstrates how severely overly leveraged bullish wagers were penalized.
The majority of liquidations were caused by Hyperliquid and Bybit according to exchange-level data, with Hyperliquid alone recording $62.5 million in positions erased. Following closely behind were Binance and OKX, demonstrating how market stress was widely dispersed across platforms.
A noteworthy finding that highlights the strong bullish positioning prior to the crash is that long traders accounted for nearly 95% of liquidations. The price action of Bitcoin is slipping below the 50-day exponential moving average (EMA) on its daily chart, according to technical analysis. The next critical level is at the 200-day EMA, which is close to $106,000. If this zone does not hold, there is a chance that sell-offs will follow, pushing Bitcoin closer to psychological levels around $100,000.
A bearish narrative is further supported by volume data, which shows a sharp increase in selling activity, while buyers are still hesitant. This move, driven by liquidation, also suggests that leveraged longs may be reaching exhaustion, which could reset funding rates and pave the way for a more robust recovery in the weeks ahead.
On the other hand, short-term risks are still high because Bitcoin is having trouble recovering $113,000. As of right now, the market is in a precarious position, and excessive leverage has been reduced, but there are still downside risks. Whether Bitcoin can sustain above $110,000, or if the subsequent decline toward $106,000 is inevitable, will be the focus of traders’ attention.
