1.8B Crypto Liquidations Wipe 370k Traders, BTC Tests $100k
The crypto market saw $1.8 billion in crypto liquidations in a single session, wiping out leveraged positions for over 370,000 traders and triggering a $150 billion drop in total market cap to $3.95 trillion.
Bitcoin plunged below $112,000 and now tests the $100,000–$105,000 support zone near its 200-day moving average. Ethereum also fell under $4,150.
Analysts attribute the sell-off to technical overextension and extreme altcoin leverage triggering chained margin calls. IG’s Tony Sycamore sees the 200-day MA as key to clear weak hands, while Real Vision’s Raoul Pal calls the purge a routine cleanup before a potential breakout.
After these crypto liquidations, historical September weakness suggests further volatility. Traders should view any dip near support as a buying opportunity, reassess leverage, monitor funding rates and open interest, and plan scaled re-entries with volume confirmation.
Bearish
Forced liquidations of $1.8 billion generated immediate bearish pressure, driving Bitcoin below $112,000 and testing key support near $100,000. Extreme altcoin leverage and chained margin calls signal technical overextension, suggesting short-term downside risk. However, clearing weak positions around the 200-day moving average may set the stage for a healthier rebound later. Overall, the event dampens market sentiment in the near term.