A powerful counterattack by short sellers has unleashed a wave of liquidations in the Bitcoin (BTC) derivatives market. According to data analytics platform CoinGlass, $15.43 million worth of Bitcoin futures positions were liquidated in just one hour, of which over $13.78 million were short positions. The liquidation of long positions amounted to only $1.65 million, resulting in a liquidation imbalance of 835% compared to short positions.
This unusual liquidation flow indicates a phenomenon akin to a short squeeze (forced liquidation of short positions) in the market. The liquidation imbalance exceeding 800% is an unusual case, resulting in severe losses for investors already holding short positions, while providing a strong boost to buying.
Interestingly, the largest single liquidation of the day occurred on the Ethereum (ETH)-based Hyperliquid exchange, worth approximately $11.62 million (approximately KRW 16.1478 billion). This highlights the rapid liquidation across various exchanges in the market, demonstrating the rapid liquidation of positions even on a single exchange.
Over the past 24 hours, a total of $364.32 million (approximately KRW 506.6 billion) in liquidations occurred across the entire cryptocurrency market, of which $266.99 million (approximately KRW 369.161 billion) were short liquidations, clearly indicating a buying trend. Bitcoin was at the center of this liquidation, with $114 million (approximately KRW 158.6 billion) of positions liquidated by so-called "bear" short sellers.
At present, the Bitcoin price is approaching $120,000 (approximately 166.8 million won), and several technical indicators indicate a strengthening rebound trend. Market experts predict that, "If Bitcoin maintains its price above $119,500 (approximately 166.12 million won), there is a possibility that it will settle in the $120,500 (approximately 168.19 million won) to $121,000 (approximately 168.19 million won) range."
Above all, after this recent liquidation storm, funding fees have gradually stabilized, and excessive short selling pressure has noticeably decreased. This signals a potential rapid restructuring of the market structure, centered on buying. The opening of the U.S. market will likely be a critical turning point in determining whether Bitcoin can continue its record-breaking streak.
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