The crypto market is under heavy pressure once again, with major assets sliding deep into the red and leveraged traders taking the brunt of the hit.
Key Takeaways:
Bitcoin dropped to $88K, pulling the entire crypto market sharply lower
More than $559M in leveraged positions were liquidated in 24 hours
Ethereum led the liquidation wave, followed by Bitcoin and major altcoins
Bitcoin’s RSI has fallen into oversold territory, while MACD still shows strong bearish momentum
Bitcoin has dropped to $88,675, down 5.20% over the last 24 hours and 12.34% for the week, while Ethereum has fallen even harder to $2,872, reflecting a 9.06% daily decline and over 15% weekly losses.
Most major altcoins are mirroring the downturn. XRP has slipped to $2.03, down almost 9% daily and more than 12% weekly, and Solana continues its correction at $130.91, marking a 7.57% loss in the last 24 hours and nearly 14% over seven days. Market sentiment across all top assets has turned sharply risk-off, and liquidity in the derivatives market is shifting rapidly.
Wave of Liquidations Hits Highly Leveraged Positions
The selloff has triggered large-scale liquidations across derivatives exchanges. Data shows that over $559 million in leveraged positions were wiped out in the last 24 hours, affecting 169,985 traders. The bloodbath has been especially painful for long positions, which accounted for the majority of the liquidation cascade.
Ethereum experienced the heaviest hit with $216.51 million liquidated, followed by Bitcoin at $148.38 million. Solana and XRP also saw significant forced closures, reflecting the broader unwind of bullish leverage across altcoins.
The single largest liquidation occurred on Hyperliquid, involving an ETH-USD trade worth $24.22 million, underscoring how aggressively traders were positioned for upside before the sudden price breakdown.
Chart-Based Momentum Signals Point to Overselling – But No Recovery Confirmation Yet
Technical indicators reinforce the severity of the latest downturn. On the 4-hour chart, Bitcoin’s RSI has plunged to 28, placing it firmly in the oversold zone, a level seen rarely during this cycle and usually associated with short-term exhaustion of selling pressure.
However, the MACD continues to trend sharply downward, with no bullish crossover forming yet — suggesting that while sellers may be slowing, momentum has not shifted back in favor of buyers. Historically, this combination — oversold RSI paired with a deeply negative MACD — precedes volatility rather than an instant reversal, meaning the market may continue to chop before any meaningful recovery attempt.
Liquidity Pushes Market Lower – But Volatility Could Continue
For now, the market continues to react to immediate selling pressure rather than macro catalysts or long-term fundamentals. Traders exiting long positions in large clusters have amplified volatility, creating what analysts call a “reflexive downside loop.” As funding rates reset and leverage cools, price stabilization may follow — but the timing remains uncertain.
Short-term sentiment remains fragile, especially with key support levels now being tested. Many traders will be watching Bitcoin’s activity around the $85,000–$88,000 zone, which now represents the market’s nearest line of defense against deeper losses.
