$BTC suddenly plunges; in 1 hour positions were liquidated totaling $180 million—who once again blew up the leverage?
That just-formed bearish candle was a bit brutal: BTC, ETH, SOL, and BNB all got dumped almost at the same time.
At the moment, it doesn’t look like a single project suddenly blew up; it looks more like highly leveraged positions at the top are starting a mass liquidation spiral.
A few days ago, the market just went through a squeeze—once the shorts got squeezed out, the longs started chasing aggressively and leverage was piled back up again. Now, when BTC gets nudged down even slightly, long positions begin getting liquidated. Those liquidation sell orders then push the price down further, and the next batch of long positions gets wiped out as well.
Can this round really wash out all the high leverage?
If, going forward, OI clearly declines and the price stabilizes, then this looks more like a normal deleveraging event.
But if the bearish candle keeps expanding, then it won’t be just a simple leverage shakeout—the market may need to re-price the valuation of the rally from the past few days.
That just-formed bearish candle was a bit brutal: BTC, ETH, SOL, and BNB all got dumped almost at the same time.
At the moment, it doesn’t look like a single project suddenly blew up; it looks more like highly leveraged positions at the top are starting a mass liquidation spiral.
A few days ago, the market just went through a squeeze—once the shorts got squeezed out, the longs started chasing aggressively and leverage was piled back up again. Now, when BTC gets nudged down even slightly, long positions begin getting liquidated. Those liquidation sell orders then push the price down further, and the next batch of long positions gets wiped out as well.
Can this round really wash out all the high leverage?
If, going forward, OI clearly declines and the price stabilizes, then this looks more like a normal deleveraging event.
But if the bearish candle keeps expanding, then it won’t be just a simple leverage shakeout—the market may need to re-price the valuation of the rally from the past few days.