The cryptocurrency market has witnessed a massive liquidation wave exceeding $585 million over the past 24 hours, with more than 161,000 traders losing their positions amid a sharp increase in volatility.
Ethereum was the most affected with losses amounting to $182 million, followed by Bitcoin with losses reaching $104 million, reflecting a state of increasing tension and uncertainty in the market.
In terms of trading platforms, Binance led the liquidations with over $26 million, followed by Bybit and OKX.
The majority of liquidations were concentrated in long positions, exceeding $407 million, indicating that many traders were expecting the upward trend to continue.
However, the market surprised them with sudden corrections that triggered widespread stop-loss orders.
Technically, Ethereum showed signs of weakness after its failed attempt to break the $3,800 level, as the price dropped sharply with a noticeable decrease in trading volume, reflecting a state of buying exhaustion.
Bitcoin, which is currently trading below the $120,000 level, has broken a rising trend line, with the overall technical structure remaining stable, but weak liquidity increases the uncertainty of forecasts.
If Bitcoin fails to reclaim the $120,000 level, it may test closer supports at $114,000 and possibly $110,000. This scenario reflects the dominance of high leverage in the market, as adverse movements to expectations lead to cascading effects rather than mere profit-taking.
While the current situation cannot be described as a complete collapse, signs of slowing momentum and declining confidence may pave the way for further fluctuations or declines.
In light of the potential for increased volatility, traders are advised to exercise caution and avoid excessive exposure to high-risk assets until the picture becomes clearer in the coming days.
