Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
A wave of liquidations has hit the cryptocurrency market, wiping out leveraged positions worth over $447,000,000 in a single day. Bitcoin came in second with $101,000,000, and Ethereum led the slaughter with over $176,000,000 liquidated. The fragility of the current rally is obvious.
Bitcoin's wipeout
According to the liquidation heatmap, major assets like Bitcoin and Ethereum experienced abrupt long wipeouts, while smaller tokens were overwhelmingly dominated by short liquidations. The majority of liquidations occurred on Bybit and Binance. Real-time liquidation spikes in mid-cap tokens put additional strain on traders.
Since falling below $118,000, Bitcoin has had difficulty regaining its footing in the price action space. According to the chart, Bitcoin is currently trading between $111,000 and $112,000, experiencing brief support at its 100-day moving average.
A change in sentiment has been brought about by the RSI’s breakdown from recent highs, even though it is stabilizing at 53. The next crucial test is approximately $110,000. If that level is broken, Bitcoin may move toward the $104,000 support zone, which would accelerate the market’s decline.
ETH more vulnerable
Ethereum’s position is more vulnerable. ETH has experienced a significant decline after reaching a high of over $4,800 and is currently trading close to $4,200. Although the RSI has returned to neutral levels as a result of the correction, the volume of liquidations indicates that buying pressure has petered out.
ETH may return to $3,600 in the near future if selling picks up speed, but the 50-day EMA at $4,040 is the first significant support. Nevertheless, ETH continues to be the most robust asset in terms of demand and on-chain activity, which makes its midterm outlook more robust than that of the majority of altcoins.
With combined liquidations exceeding $25,000,000, the wipeout has had repercussions for other large-cap coins, such as XRP and SOL. As traders manage their risk over the coming days, the market may continue to be volatile due to the size of leveraged positions that have been unwound.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team