Crypto Liquidations Top $1.68B Amid BTC and ETH Price Dip
Over the past 24 hours, crypto liquidations reached $1.68B, including $1.04B in just one hour, amid sharp drops in BTC and ETH prices. Data from CoinGlass shows $1.598B of long positions were forced closed, with ETH traders losing over $500M. More than 389,000 traders faced liquidations as BTC dipped below $113,000 and ETH fell under $4,200. High leverage and cascading margin calls fueled selling pressure. This crypto liquidation wave highlights the risks of leveraged trading and market volatility. Traders should track crypto liquidations on platforms like CoinGlass to gauge sentiment and adjust risk. They should manage leverage, set stop-loss orders, and diversify portfolios. It is also crucial to monitor funding rates, open interest, US PMI data, Fed policy signals, and technical levels. These measures can help anticipate market shifts and identify potential buying opportunities during price corrections.
Bearish
Massive forced liquidations of $1.68B in 24 hours, driven by a sharp BTC and ETH price dip, created significant selling pressure. High leverage and cascading margin calls typically force further sell-offs, leading to short-term bearish momentum. While such liquidation waves can present buying opportunities at lower levels, the immediate effect on BTC and ETH prices is negative. Monitoring funding rates, open interest, and macro indicators may help traders time re-entries, but the current sentiment remains bearish.