Bitcoin and Ethereum Dominate Liquidation Surge in Digital Asset Derivatives Market

The digital asset derivatives market is experiencing a significant wave of liquidations predominantly impacting long positions, with Bitcoin (BTC) and Ethereum (ETH) emerging as the central focal points. Together, these two leading cryptocurrencies accounted for a substantial 54% of total liquidations, highlighting the intense pressure on major digital assets. Other altcoins, such as Solana (SOL), also recorded high volumes of liquidation activity, primarily targeting long positions across the market landscape.

According to CoinGlass data from October 29 (KST), the total liquidations within the past 24 hours surged to $553.91 million, reflecting a sharp 75% increase compared to the previous day. Long positions accounted for the majority of this figure, totaling $396.4 million—approximately 71.5% of all liquidations—while short positions amounted to $157.51 million.

BTC and ETH: Leading the Liquidation Wave

Bitcoin and Ethereum were at the epicenter of this liquidation cascade. Ethereum witnessed a notable price drop of 3.70% over the past day, resulting in a staggering $166.41 million in liquidations, representing 30% of the total liquidation volume. Within Ethereum, long positions took the heaviest toll, with $121.22 million wiped out—significantly overshadowing short position liquidations.

Bitcoin faced similar liquidation pressures, with its price decreasing by 1.70%. Liquidations tied to BTC totaled $128.75 million in the past day, with long position liquidations amounting to $85.74 million. Short position liquidations were comparatively lower, registering $43.02 million.

Among altcoins, Solana (SOL) experienced the highest reported liquidation volume, with $58.89 million lost in the previous day. Even HyperLiquid (HYPE), a lesser-known altcoin that posted a modest 1.98% price increase, was not immune to the broad liquidation pressures. Long liquidation dominance persisted for HYPE, with liquidations amounting to $1.34 million versus $590,000 for short positions.

Widespread Deleveraging Evident in Market Metrics

Market activity revealed crucial signs of deleveraging amid the surge in liquidations. The total 24-hour trading volume for digital assets reached $334.8 billion, representing a 12.36% increase from the previous day. However, the aggregate open interest—the cumulative dollar value of outstanding derivatives contracts—fell by 2.41%, dropping to $162.3 billion. This decline indicates a reduced leverage ratio across the market, spurred by the widespread liquidations targeting long positions.

Throughout the day, 148,547 traders were subjected to liquidation events. Among these, the largest single liquidation involved a BTC-USD pair on HyperLiquid, amounting to $6.31 million.

Bitcoin’s Liquidation Map Highlights Key Resistance Levels

Bitcoin’s liquidation map points to critical resistance thresholds that could dictate near-term price movements and volatility. The current BTC price is positioned above significant long liquidation zones, notably in the $11,200-to-$11,300 range. Should Bitcoin manage to breach the $11,200 resistance level, it may pave the way for a technical rebound. Conversely, a price dip below $11,100 could trigger a cascade of selling pressure, amplifying bearish momentum in the market.

This dynamic is underscored by the map's signals, which indicate that Bitcoin is currently navigating a transitional phase from neutral sentiment toward bearish territory.

Market Sentiment Signals Fragility

Market sentiment remains precarious, as reflected by mixed indicators. The Fear & Greed Index stood at 42, denoting "neutral" sentiment but tilting toward "fear." Furthermore, Bitcoin’s Relative Strength Index (RSI) placed the asset in a neutral technical position at 49.3, emphasizing the uncertain outlook.

Short-term trading patterns reflected these broader conditions, with technical rebounds failing to hold. Over the past hour, BTC long liquidations reached $3.11 million, significantly outpacing short liquidations of $800,000 during the same period. Ethereum showcased a similar dynamic; long liquidations dominated short-term (1-hour), mid-term (12-hour), and long-term (24-hour) time frames, reinforcing the heightened vulnerability of major cryptocurrencies.

Navigating Fragile Market Conditions

The ongoing liquidation wave poses significant challenges for traders and investors navigating an increasingly volatile market. As Bitcoin and Ethereum—alongside other digital assets—hover near critical technical thresholds, traders are advised to exercise caution and closely monitor emerging market conditions and sentiment indicators.

With sentiment leaning toward fear and market leverage continuing to decrease, the derivatives market reflects mounting uncertainty. The interplay between liquidation zones, resistance levels, and bearish market signals suggests heightened short-term volatility ahead for major cryptocurrencies, necessitating strategic and vigilant trading practices.