The crypto market just staged a thrilling drama: In the past 24 hours, the total liquidation across the network reached $143 million, with $91.01 million coming from short positions, a significant portion! ETH's price soared to $2,640.08, up 3.75% in 24 hours, with a liquidation amount of $39.9 million, accounting for 27.8% of the total. BTC also showed strength, priced at $107,419.63, up 1.82%. This short massacre caused market sentiment to fluctuate like a roller coaster, with volatility skyrocketing!
This typical cycle of 'price breakout—chain liquidation—sentiment amplification' is once again being played out among mainstream coins. However, the liquidation behind this event is far more than just a simple technical rise.
(GENIUS Act) and US stocks: The behind-the-scenes driver of the liquidation?
Superficially, this liquidation was triggered by a rapid price increase, but from a more macro perspective, the market has long been in turmoil.
At 4:30 AM on June 18 (Beijing time), the US Senate will vote on the (GENIUS Act) (S.1582), which is a major bombshell! The bill requires stablecoins to be 100% backed by liquid assets like the dollar and prohibits tech giants like Meta and Amazon from issuing stablecoins. The market may have sensed good news: If the bill passes, the trust in compliant stablecoins like USDT and USDC will increase, liquidity in BTC/ETH trading pairs may stabilize, stimulating bullish sentiment and squeezing out shorts. However, this correlation is somewhat speculative, as the bill's vote has yet to yield results, and short-term volatility may reflect the market's expectations for 'clear regulation'.
Related news flashes and important information sharing:
Flash News 1 -- (Bernstein: Once the GENIUS Act takes effect, stablecoins will become the cash layer of the internet)
Flash News 2 -- (Coinbase CEO: Congress should pass the CLARITY Act and the GENIUS Act together)
Important News -- (September rate cut probability soars? CPI cools down, GENIUS Act barriers cleared: Crypto market welcomes good news)
Looking at the global market, on June 17, the three major US stock indices opened hot: the Dow rose by 0.48%, the S&P 500 rose by 0.56%, and the Nasdaq rose by 0.7%. This 'risk preference' sentiment often spills over into the crypto market, with BTC and ETH being popular as 'digital gold' and 'tech stocks'. The optimistic atmosphere in the US stock market may boost the confidence of bulls, pushing prices higher and triggering short liquidations.
Beneath the appearance of liquidation lies a complex interplay of speculative leverage, regulatory games, and global capital sentiment.
Technical observation: Have the bulls gained the upper hand?
If the liquidation is the echo of sentiment, then the candlestick chart is the true signal light for the next direction.
BTC
Currently, the BTC price is around $107,133. Although it rebounded strongly from the low point, peaking at $108,900, it has since been pulled back down, with both bulls and bears fiercely contesting. Technically, RSI has rebounded from 32 to 62, escaping the oversold zone but not yet reaching the overbought zone—indicating that market momentum is recovering but not fully ignited. Meanwhile, on the MACD front, the DIF and DEA just crossed over recently, and the histogram has just turned from green to red, suggesting that while there are signs of a stronger trend, caution against false breakouts is still needed.
In simple terms, the current BTC market is a duel between experts, with neither side willing to reveal their cards first. From AiCoin's major order data, there are active buy orders from major funds at the support level below, clearly 'protecting the market'; while above the key level of $108,000, a large number of shorts are waiting to explode, and once the price approaches there, the bears are likely to choose to sell off or continue to increase their positions, forming strong pressure. Thus, we are currently in a standard 'tug-of-war phase', and we can only wait to see which side breaks out of the trenches first.
EHT
On the ETH side, the rebound momentum is clearly stronger than that of BTC. After experiencing a sharp drop, the price quickly 'bounced back', with RSI even recovering from the oversold zone (below 30) directly to the midline, indicating a rapid recovery of market sentiment. Although MACD is still in a death cross state, the DIF line has begun to turn upwards, approaching the DEA line—if a golden cross can form, it will signal further bullish momentum! On the candlestick chart, a 'V-shaped reversal' is already taking shape, suggesting that the bulls are vying for the initiative.
From the perspective of major orders, ETH is also a battleground. Above $2,650, there is a large number of short positions, and if the price rebounds here without accompanying trading volume, it could easily be pushed back down. Between $2,480 and $2,500, however, there are many large green orders, indicating that bulls are using real capital to support the bottom, with very clear intentions to protect the market. This shows that neither side is willing to 'call a truce', and the market remains in a critical tug-of-war range.
So, don't assume the direction is already chosen just because of the liquidation. The true trend hasn't been determined yet.
For us, the smartest move right now is—don’t rush to 'pick sides', but use AiCoin's indicator alert function to set reminders at key points (like $108,000 for BTC, and $2,650 and $2,500 for ETH). Once one side truly 'charges', you can capture the signal immediately and act accordingly. Until the direction is clear, patience is your strongest weapon.
What does this liquidation tell us?
This $143 million liquidation event provides us with several key signals:
The leverage structure is already very fragile. Although the current stalemate is evident, once prices break above significant resistance, shorts could easily face a cascading liquidation.
Investor sentiment is fluctuating sharply with regulatory expectations. The (GENIUS Act) has not yet passed, but mere 'potential good news' can trigger market expectation evolution. This behavior indicates an extreme desire for 'certainty' in the market.
Liquidity is concentrating towards mainstream assets. Expectations for compliant stablecoins may eliminate smaller stablecoins, while mainstream assets like ETH/BTC may emerge as winners, especially the core currencies of on-chain trading pairs and DeFi protocols.
The most critical point is: The liquidation is not the end, but the starting point for a redistribution of the market.
Conclusion: Is it time to go long? Or be wary of a rebound that entices buying?
The crypto market is never short of liquidations, but those that can trigger structural shifts often carry significant signals. ETH's strong breakout may be the fuse for the next wave of mainstream coin movements; however, blindly chasing after good news before it materializes is equally risky.
The key observations moving forward are:
(GENIUS Act) Did the voting results bring about regulatory 'boots on the ground';
Can the US stock market continue its high-risk preference;
Can ETH and BTC stabilize and break through key resistance areas?
The direction of the market often hides behind those 'unexpected events'. This liquidation, is it the end or the beginning? The answer needs to be found in the candlestick chart.
