Crypto rises on short squeeze momentum, but reversal risk remains elevated after nearly $380M in liquidations
📌 The crypto market has just seen a major 24h liquidation wave, with total liquidations reaching around $379.38M and nearly 88,680 traders wiped out. The key point is that shorts dominated the move, with about $250.26M liquidated, equal to nearly 66% of the total, showing that the current upside momentum is mainly being driven by forced short covering.
🔎 $BTC and $ETH remain the center of volatility, recording around $113.22M and $84.58M in liquidations respectively. Major altcoins such as $SOL and $SUI also stood out with high liquidation figures, showing that the volatility is no longer limited to blue-chip assets but has spread into higher-beta coins.
💡 One supportive factor for the move is that total market OI remains around $132–134B after the liquidation wave, suggesting new positions are being built rather than the market simply closing old trades. Funding rates are positive but not overheated, so the short-term bias remains slightly bullish without yet reaching extreme FOMO conditions.
⚠️ The nearest navigation zone for BTC is around $79,500–$80,000 as support and $82,000–$83,000 as resistance. If this support area holds, the market may continue to trade at higher levels or squeeze more shorts above; if $80,000 is lost, the risk of renewed long liquidations will rise quickly.
✅ Overall, short-term momentum still leans toward buyers thanks to a clear short squeeze, but after a large liquidation wave, volatility usually does not end immediately. This phase is better suited for watching price reaction around $80,000 than chasing high leverage near resistance.