Mass Liquidations Continue: $860M Lost as Bitcoin and Ethereum Shatter Key Support Levels

Blood in the water. The crypto market just took another brutal hit, with cascading liquidations wiping out $860 million in leveraged positions. Bitcoin and Ethereum didn't just dip—they crashed through levels traders swore would hold.

The Domino Effect

When major assets break down, the whole house of cards trembles. Automated systems don't hesitate—they sell, triggering more liquidations in a self-feeding spiral. It's the market's ruthless way of resetting over-leveraged optimism.

Anatomy of a Flash Crash

Liquidations aren't just numbers on a screen. They represent real capital, evaporated in minutes. Long positions got hammered hardest, a classic sign the crowd was betting heavily on a rally that never came. The speed of the move suggests algo-trading amplified the pain, turning a correction into a rout.

What's Next for the Market?

Volatility isn't a bug; it's a feature. These shakeouts, while painful, flush out weak hands and excessive leverage. They create the foundation for the next move—wherever that may be. Just remember, for every trader nursing losses today, a cold-eyed counterparty is booking profits. That's the zero-sum game Wall Street perfected, now running 24/7 on blockchain rails.

Bitcoin Slips Below Key Support as Liquidations Mount

Data from multiple tracking platforms shows that more than $860 million worth of crypto positions were liquidated within a 24-hour period, with bitcoin accounting for the largest share. Long positions dominated the wipeout, highlighting how heavily traders had been positioned for upside before the drop.

Bitcoin’s MOVE below its 365-day moving average has added to bearish signals. On-chain analysts note that since falling below this long-term trend line in November 2025, BTC has declined at a faster pace than during comparable phases of the 2022 bear market.

ETF flows have also weakened, with U.S. spot Bitcoin ETFs shifting from net inflows to net outflows in early 2026, removing a key source of demand.

Market participants are now watching the $70,000 level closely. Some analysts see it as potential support, while others warn that a sustained break could open the door to a deeper move toward the $60,000 region if sentiment fails to stabilize.

Ethereum Deleveraging Adds to Downside Pressure

Ethereum has not been spared from the turmoil. ETH-related liquidations have exceeded $200 million in recent sessions, as the price dipped toward the $2,000 mark.

Large holders have also moved to reduce risk. On-chain data shows that Trend Research sold roughly 188,500 ETH over several days and repaid hundreds of millions of dollars in stablecoins to cut leverage, lowering its liquidation thresholds.

This deleveraging has shifted attention to potential risk zones between $1,576 and $1,682, where forced liquidations could cluster if prices continue to slide.

Beyond Bitcoin and Ethereum, major altcoins including BNB, Solana, and Dogecoin have posted daily losses of 6% to 11%. Total crypto market capitalization has fallen to around $2.4–$2.5 trillion, while open interest in derivatives markets continues to decline, signaling reduced risk appetite.

Sentiment indicators reflect growing caution. The Fear and Greed Index has slipped deeper into “extreme fear,” and concerns around stablecoin stability, particularly brief deviations in USDT’s peg, have added another LAYER of uncertainty. Traders remain focused on whether key support levels can hold or if further liquidations lie ahead.

Cover image from ChatGPT, BTCUSD chart from Tradingview