When forced liquidations start running the market, the real alpha isn’t guessing the next candle – it’s understanding who is getting wiped out and where the next big move can ignite.
What today’s liquidation data is signaling
Over the last 24h, total crypto liquidations are sitting in the “low hundreds of millions” zone (around $150M–$200M), which is elevated but not full‑capitulation level.
The bulk of that is from long positions, with a recent split near ~$120M longs vs ~$40M shorts, showing that over‑leveraged dip buyers are still being flushed out rather than aggressive shorts being punished.
Previous days printed even higher ranges (roughly $230M–$330M per day), so leverage has started to cool, but intraday spikes are still sharp, with single sessions seeing 200%+ jumps in liquidations.
Why this matters for traders
A series of long‑side liquidations usually marks a cleansing phase: weak hands and high leverage get forced out, leaving a cleaner base for any future trend.
Until daily liquidations clearly trend lower and funding/OI normalize, every bounce is vulnerable to another “flush” – meaning chasing green candles with high leverage is still dangerous.
Smart entries tend to appear either:
After a big liquidation spike that fails to push price to new lows (sign of absorption), or
After a period where liquidation numbers shrink and price starts grinding up on spot volume instead of perps.
How to position around this environment
Keep leverage low or zero; treat this phase as survival + accumulation, not hero trades.
Use clear invalidation: if you buy spot or low‑leverage, define the level where your idea is wrong (recent swing low / major support) instead of “hoping” the next liquidation wave spares you.
Watch how price reacts on the next big liquidation cluster: if a $150M–$300M wipeout only moves price a few percent, it often means stronger hands are finally stepping in.
If forced selling is already in the “hundreds of millions” and still mostly hitting longs, the real question isn’t whether liquidations stop today – it’s whether this flush is setting up the dry powder that sends the next move violently in the opposite direction… and if that happens, will you be on the right side of the 10x narrative or still trading inside the liquidation zone?
$BTC
