The cryptocurrency market experienced a significant drop over the last 24 hours, losing around 4.5% of its value due to liquidations, primarily impacting long positions.
What $900M in Crypto Liquidations Means
A liquidation is a forced closure of a position that cannot cover losses. Large batches of liquidations often accelerate price movements. In the past day, liquidation feeds showed significant long liquidations totaling approximately $904 million, with $818 million from longs. The largest single liquidation was $39.24 million on a BTC/USDT pair.
Levels That Can Flip the Trend for Crypto Market
Price levels are crucial. The total crypto market cap currently sits at $3.73 trillion. It is important to monitor the $3.69 trillion level, which has acted as support. If the market reclaims the $3.83 trillion level, it could improve momentum, potentially reaching $3.92 trillion and $4.00 trillion.
Where the Next Squeeze Could Come From
Liquidation maps indicate potential squeezes for short positions. If Bitcoin's price rises to $121,000, many shorts will be forced to cover, accelerating upward movement. Similar accumulations above $5,000 for Ethereum could lead to significant short position liquidations.
Thus, the support at $3.69 trillion becomes critical for the market's further development. If this support holds and buyers return, liquidations could switch from a drag to fuel for the next growth phase.
