$802M Crypto Bloodbath: Bullish Traders Rekt as Market Corrects

Crypto's leverage addicts just got a brutal margin call. Liquidations hit $802 million as overzealous bulls got caught leaning the wrong way.

Who blinked first?

Turns out even 'diamond hands' have stop-losses when BTC dips 8% in 24 hours. Exchanges gleefully auto-closed positions faster than a Wall Street banker dodging subpoenas.

The silver lining? This flush sets the stage for healthier price action. But let's be real—the only 'long-term holders' in crypto are the IRS and exchange bankruptcy lawyers.

Unwinding of Longs Dominates Sell-Off

The data from CoinGlass makes it clear that long liquidations heavily outpaced short liquidations across all timeframes. In just the past hour, long positions saw over $71.83 million in liquidations, compared to only $11.97 million for short positions.

The same trend was experienced in the 4H window and 12h window too, which was a clear indication that the amount of traders betting on the long shot on price was already excessive, expecting a bullish breakout rally which totally failed to occur.

The biggest liquidation order was detected on the Binance cryptocurrency exchange on the ETH/USD. The transaction value was about $13.79 million, which further reinforced the leverage liquidation related to Ethereum.

Market Implications and the Road Ahead

Liquidation cycles this big usually FORM a local low or point to a sharp reversal. The washout had the potential of re-setting funding rates, de-escalating the too greedy sentiments, and creating a more stable foundation of a bullish second coming.

There could yet be immediate volatility as the fallout is digested by traders and they become re-engaged in the markets slowly.

To understand whether this shakeout was a healthy correction or the start of a long downtrend, investors should watch volume spikes, critical support levels and RSI signals across the big tokens.

Conclusion

Such a destructive event as liquidation of the crypto market to the sum of $800 million may seem devastating, but it can serve as the foundation to the more sustainable rally. Till then, it is advisable to be cautious and be patient as smoke clears off.

Also Read: Indonesia’s crypto Tax Revenue Surges, New Regulations Signal 

This content is for informational purposes only and does not constitute financial advice. Crypto asset investments carry regulatory risk and are not suitable for all jurisdictions.