Crypto liquidations hit 650 million as BTC and ETH enter the overbought territory
The cryptocurrency market is currently experiencing high volatility as long liquidations begin to rise. Both Bitcoin and Ethereum have entered the overbought zone.
According to data from Coinglass, total cryptocurrency liquidations have increased by 70% in the past day, totaling $650 million — $366 million in long positions and $284 million in short positions.
Only a few tokens, such as Bitcoin (BTC), have seen increased short liquidations, while most cryptocurrencies have been experiencing long liquidations. This indicates a potential market-wide cooldown as the highly volatile sector shows signs of overheating.
Bitcoin saw $122.1 million in liquidations — $37.5 million in long positions and $84.6 million in short positions, according to Coinglass. This was primarily due to the flagship asset’s rally to a new all-time high of $81,858, with a market cap of $1.6 trillion.
On the other hand, Ethereum (ETH) experienced $91.2 million in liquidations over the past day — $56.7 million in long positions and $34.5 million in short positions, as reported by Coinglass. The leading altcoin has already started a downward trend from its three-month high of $3,241.
Most of the liquidations, totaling $262 million, occurred on Binance, the largest cryptocurrency exchange by trading volume, with 59% being long positions.
Data from Coinglass shows that total cryptocurrency open interest has increased by 1.13% in the past day, reaching $91.9 billion. The global cryptocurrency market cap has also reached a three-year high of $2.9 trillion, with a trading volume exceeding $300 billion.
Bitcoin’s surge above $80,000 has put it in the overbought zone, with its Relative Strength Index (RSI) reaching 75. This typically occurs during sudden price surges, increasing the likelihood of short-term profit-taking. Ethereum has seen a similar movement, with its price surpassing $3,200 and its RSI currently at 74.
Despite this, Ethereum has declined by 1% in the past 24 hours, trading at $3,150 at the time of reporting. One of the main reasons for this could be the increase in long liquidations.
Given the rising open interest, liquidations, and trading volume, high volatility is expected in the market before another major push. Gemini co-founder Cameron Winklevoss believes that the current bull run has not been driven by retail investors, while CryptoQuant CEO Ki Young Ju suggests that the futures market may be overheating, potentially signaling a bearish trend ahead in 2025.
