Long Positions Take Greater Liquidation Hit Despite Stabilizing Digital Asset Market

The digital asset market’s downturn has shown signs of stabilization, yet long positions in derivative trading have faced significantly heavier liquidations than short positions. Unlike the previous trading session, which saw both long and short leveraged positions wiped out at similar rates, the latest data highlights a clear shift in liquidation trends favoring shorts. Bitcoin (BTC) and Ethereum (ETH) continued to dominate liquidation volumes, underscoring their central role in market volatility.

Despite the focus on long liquidation, reduced market volatility has contributed to a sharp decline in overall liquidation levels compared to prior sessions.

Long Positions Dominate Liquidation Totals as Market Volatility Dips

Data from CoinGlass on October 23 (Korea Standard Time) reveals a notable drop in overall liquidation volume. The total value of liquidations over the past 24 hours stood at $497.22 million (approximately 713.3 billion KRW), marking a 40.08% decrease from the previous session. However, long positions accounted for a disproportionately large share, totaling $370.22 million (approximately 524.4 billion KRW), nearly triple the $127.01 million (approximately 179.6 billion KRW) in short liquidations.

Bitcoin and Ethereum together accounted for $255.12 million (approximately 366.1 billion KRW), or 51.31% of the total liquidations, reaffirming their dominance in the crypto market.

Ethereum Records Highest Liquidation Values

Ethereum (ETH) emerged as the asset with the largest liquidation activity. Over the 24-hour period, ETH liquidations totaled $149.58 million (approximately 214.6 billion KRW), with long liquidations contributing $100.54 million (approximately 144.2 billion KRW). This figure dwarfed the $49.04 million (approximately 70.4 billion KRW) in short liquidations. ETH’s price declined by 1.36% during the session.

Bitcoin followed closely, registering total liquidations of $105.54 million (approximately 219.4 billion KRW). Long liquidations again dominated, comprising 76.16% of the total at $80.38 million (approximately 115.3 billion KRW). BTC experienced a modest 0.35% price drop.

Altcoins Show Varied Liquidation Patterns

Altcoins witnessed substantial liquidation activity as well, with prominent projects recording significant long-biased trends. Aetina (ENA) reported liquidations amounting to $51.09 million (approximately 72.4 billion KRW). Solana (SOL), which fell 2.83% in value, saw liquidations totaling $27.30 million (approximately 38.6 billion KRW), with $22.80 million (83.51%) attributed to long positions.

Binance Coin (BNB) and HyperLiquid (HYPE), in contrast, registered gains of 1.23% and 7.43%, respectively. Despite the upticks, both assets followed broader market patterns where long liquidations exceeded short liquidations, signaling ongoing caution among leveraged investors.

Shifting Market Dynamics and Short-Term Position Trends

Short-term trends reveal fluctuating market dynamics, particularly in Bitcoin trading. In just one hour, around $1.81 million (approximately 2.6 billion KRW) worth of BTC short positions were liquidated, potentially driven by swift technical rebounds. The data points to heightened sensitivity among traders to any price shifts.

Trading volume over the past 24 hours fell by 17.27%, settling at $316.1 billion (approximately 453 trillion KRW), while open interest (OI) dipped marginally by 0.36% to $147.2 billion (approximately 211 trillion KRW). The declines in both metrics reflect a cautious and uncertain trading environment following a $1 billion liquidation spree in the prior session.

Market Sentiment Remains Subdued Amid Cautious Investor Activity

Over the past day, liquidations impacted a total of 146,657 traders, with the largest single liquidation event amounting to $13.97 million under the BTC-USD trading pair on HyperLiquid. These numbers highlight ongoing market fragility as participants reassess positions in a challenging trading environment.

Market sentiment remains firmly in "Fear" territory, with the Fear & Greed Index at 29. This sentiment aligns with technical indicators such as the Relative Strength Index (RSI), which is near oversold levels at 44.52. Analysts continue to see psychological resistance as a key factor suppressing momentum for a meaningful recovery.

According to one industry expert, “A vital positive is Bitcoin holding its $10,800 support level, which has prevented deeper losses. However, low trading volumes and decreased liquidation figures signal stagnated movement, leaving the market susceptible to further downward pressure. Investors need reassurance to overcome prevailing caution.”

Outlook: Reduced Volatility But Uncertain Market Trajectory

As volatility eases and liquidations decline, digital asset markets find themselves at a delicate crossroads. While the stabilization offers hope for reduced turbulence, the persistent caution among traders underscores the fragility of the current market setup. Analysts remain vigilant as the market seeks direction in an environment still dominated by fear and uncertain sentiment.