The Bitcoin derivatives market recently presented an unusual scenario, as CoinGlass’s hourly liquidation heatmap revealed a significant bias against short positions. In just one hour, $15.43 million worth of BTC positions were liquidated, with shorts accounting for $13.78 million and longs only $1.65 million. This represents an imbalance of 835.15%.
Bitcoin was the focal point during this period, yet the largest single liquidation involved an ETH/USD position on Hyperliquid valued at $11.62 million.
Over the last day, crypto markets experienced liquidations totaling $364.32 million. Short positions contributed to $266.99 million of this amount, while long positions made up $97.33 million. Bitcoin played a pivotal role in these events by leading to over $114 million in bear-driven liquidations. Additionally, funding rates have stabilized as interest in aggressive shorting wanes.
The price remains a crucial factor as BTC swiftly rebounded post-squeeze and settled just under the $120,000 mark. With shorts significantly diminished, many traders are now pondering whether the market can maintain momentum above this psychological threshold during U.S trading hours.
Implications
The current skew towards bulls suggests that forced liquidations have considerably influenced exchange positioning in favor of bullish sentiment at least temporarily.
If BTC maintains its position above $119,500 it could potentially advance towards the range of 120500-121000 dollars This would reflect today’s concentrated liquidation activity’s impact on intraday crypto market dynamics