Crypto Liquidations Surge to $650M as Bitcoin and Ethereum Enter Overbought Zone
The cryptocurrency market is experiencing significant volatility as long liquidations rise, with Bitcoin and Ethereum both entering the overbought zone.
Crypto Liquidations Reach $650 Million
According to data from Coinglass, the total crypto liquidations have increased by 70% over the past 24 hours, reaching a staggering $650 million. This includes:
- $366 million in long liquidations
- $284 million in short liquidations
While only a few tokens like Bitcoin (BTC) experienced heightened short liquidations, the majority of the crypto assets have seen long liquidations. This suggests a potential market cooldown as the sector shows signs of overheating.
Bitcoin and Ethereum Face Major Liquidations
Bitcoin saw $122.1 million in liquidations, with $37.5 million in long liquidations and $84.6 million in short liquidations. This surge was largely due to Bitcoin’s rally to a new all-time high of $81,858, with a market cap of $1.6 trillion.
Ethereum, on the other hand, recorded $91.2 million in liquidations, including $56.7 million in long liquidations and $34.5 million in short liquidations. The leading altcoin began its downward momentum after reaching a three-month high of $3,241.
Binance Leads the Liquidations
The majority of liquidations, totaling $262 million, took place on Binance, the largest crypto exchange by trading volume. Notably, 59% of these liquidations were long positions.
Market Overview
Coinglass data reveals that the total crypto open interest increased by 1.13% over the past day, bringing the current open interest to $91.9 billion. Additionally, the global cryptocurrency market cap reached a three-year high of $2.9 trillion, with a trading volume exceeding $300 billion.
Bitcoin and Ethereum Enter the Overbought Zone
Bitcoin’s surge above the $80,000 mark has pushed its Relative Strength Index (RSI) to 75, indicating it is in the overbought zone. This typically signals a higher possibility of short-term profit-taking due to rapid price increases.
Ethereum also entered the overbought zone, with its price surpassing $3,200 and the ETH RSI currently sitting at 74. In the past 24 hours, Ethereum declined by 1%, trading at $3,150. This decline may be attributed to the start of long liquidations.
What to Expect in the Market
High volatility is expected to continue in the market, with increasing open interest, liquidations, and trading volume potentially leading to another major price push in the near future.
Industry Insights
- Gemini co-founder Cameron Winklevoss suggests that the recent bull run has not been driven by retail investors.
- CryptoQuant CEO Ki Young Ju warns that the futures market has “overheated” and could signal a bearish 2025 ahead.
Ecosystem
Research
News Network
About