Bitcoin, Ether, Solana Traders Liquidated for Over $1B as Prices Dump 5-10%

💡 DMK Insight

Long traders just took a massive hit, and here’s why that matters: nearly 90% of liquidations, totaling $1.14 billion, signals a serious shift in market sentiment. This kind of liquidation wave often indicates a panic sell-off, which can lead to further downward pressure on prices. Traders should be cautious, as this might trigger a cascading effect, especially if bearish sentiment continues to dominate. Look for key support levels to hold; if they break, we could see even more aggressive selling. On the flip side, this could also present a buying opportunity for contrarian traders if the market stabilizes after the dust settles. Keep an eye on the daily chart for any signs of recovery or further declines. Watching the volume and open interest can provide clues about whether this liquidation was a one-off event or the start of a larger trend. If we see a bounce back, it could be a signal to re-enter long positions, but if the bearish momentum continues, it might be time to reassess strategies.