Main content (analyst perspective):
This is not a correction; this is a precise strike against high leverage!
As an analyst who has been deeply involved in the crypto world for many years, when I see the global liquidation data, I still feel a chill down my spine—$263 million liquidated in 24 hours, with 105,000 people collectively liquidated, among which BTC, SOL, and ETH have become the hardest-hit areas, and the proportion of short positions on exchanges generally exceeds 76%, with some even soaring to 92.58%! This is definitely not a coincidence but a bloody warning from the market to the blindly leveraged traders.
1. Behind the data: Short sellers have completely taken control of the situation!
From the 4-hour data, the liquidation amount of short positions on the three major exchanges (suspected Binance, OKX, Bybit) far exceeds that of long positions, especially on one exchange where short positions accounted for 92.58%, which can almost certainly be concluded as a result of institutions collaborating to dump and retail panic selling. What does this indicate? The market makers are using liquidity gaps and contract leverage to conduct a 'long squeeze' liquidation game! Remember the '519' crash in 2021? The same script: Bitcoin plummets → leveraged long positions get liquidated → chain reaction selling → shorts celebrate.
2. Currency interpretation: Why has SOL become the 'new king of liquidations'?
SOL liquidations hit $3.4 million, closely following BTC's $3.95 million! This reflects a dangerous signal: retail investors are madly chasing popular altcoins but lack risk control awareness. SOL recently surged due to the popularity of ecological meme coins, but high volatility + high leverage = liquidation accelerators. A friend of mine used 5x leverage to long SOL, and yesterday a single 15-minute bearish candle wiped it out to zero—this is a brutal reflection of the current market.
3. Core view: Leverage is an addiction, and also a double-edged sword!
The crypto market is always repeating history: leverage is wildly increased in bull markets, and in bear markets, people lament being liquidated. But the real problem is that exchanges are the eternal winners! Regardless of bullish or bearish, high fees + liquidation mechanisms inevitably make retail investors the 'fuel'. For example: a certain exchange had $5.91 million in liquidations in 4 hours, but long positions liquidated only $1.41 million, while short positions reached as high as $4.49 million—what does this indicate? The short sellers have already positioned themselves, while retail investors are still blindly trying to catch the bottom!
4. Future warning: Beware of a 'secondary liquidation wave'!
If Bitcoin continues to fluctuate or decline, the $263 million liquidations are just an appetizer. Especially for those players using leveraged loans and rolling contracts, they are likely to become the next targets for liquidation. My advice is: reduce leverage + set hard stop-loss + stay away from high-volatility altcoins! Remember: surviving is the first rule in the crypto world.
In this market, you should be fearful when others are greedy, but when others are liquidating—you need to stay clear-headed! Follow me for an analyst's perspective to help you avoid every harvest.
