BTC and ETH Face Downside Pressure After $772M Crypto Liquidations
Market snapshot: forced selling amplifies short‑term risk for BTC and ETH
The crypto market saw approximately $772 million in liquidations over the past 24 hours, with an estimated $330 million in BTC and $202 million in ETH positions wiped out (CoinGlass). Bitcoin is trading near $108,500 after a rejection from a key resistance zone; technicals show a daily RSI around 40 and a bearish MACD. Ether corrected more than 4% following rejection at $4,232, with daily indicators pointing to further downside if momentum persists. This follows recent analysis of failed moves and liquidation events in the market, see breakouts fail.
Why the liquidations matter
Large, concentrated liquidations remove margin cushions and can cascade into further selling, especially when funding rates and leverage are elevated. The recent moves have increased intraday volatility and raised the probability of quick directional extensions if key supports fail — a dynamic traders must monitor closely when operating in crypto trading and automated trading environments. Past episodes of long liquidations show how quick deleveraging can accelerate declines.
Technical outlook
Bitcoin (BTCUSD)
Key technical notes for Bitcoin:
- Current pivot: ~ $108,500 after rejection from resistance.
- Immediate supports: 61.8% Fibonacci retracement near $106,453; October low around $102,000 is a deeper reference level.
- Upside trigger: a daily close above the ascending trendline / 50‑day EMA would open a retest of $113,608 and relieve short‑term pressure.
- Indicators: daily RSI ~40 and MACD in bearish alignment — momentum favors the downside until confirmed reversal price action appears.
Traders should watch funding rates and open interest. On confirmed breakdowns below $106,453, expect accelerated selling and higher volatility as liquidations increase.
Ether (ETHUSD)
Key technical notes for Ether:
- Recent action: >4% correction after a rejection at $4,232.
- Critical retracement: a 61.8% Fibonacci retracement level is cited as the next downside target if momentum continues.
- Recovery levels: a daily close back above $4,232 and the 50‑day EMA would validate a short‑term rebound attempt.
- Indicators: daily RSI and MACD are signaling bearish momentum, increasing the likelihood of additional downside pressure in the near term.
Trading implications and tactical setups
Short‑term setups
- Short on confirmed breaks: A decisive daily break below BTC $106,453 or ETH near the 61.8% retracement can be used for tactical short entries or hedges. Tight stop placement above the breakdown candle helps control risk and limit gamma exposure during high volatility.
- Use liquidation awareness: Given the recent $772M of liquidations, consider scaling entries and using limit orders to avoid adverse fills during spikes in funding‑driven moves.
Mean‑reversion and accumulation
- Support holds: If BTC holds the $106,453 area or ETH finds support at the 61.8% retracement and shows reversal candlesticks on daily closes, those levels may offer accumulation opportunities for mean‑reversion plays targeting the 50‑day EMA and recent swing highs.
- Volatility provides opportunities for shorter timeframes; strictly define stop loss and position size to account for post‑liquidation whipsaws.
Risk management and cross‑market considerations
Macro factors — including shifting Fed rate expectations and reduced safe‑haven demand after easing US‑China rhetoric — can influence crypto correlations with USD and risk assets. Traders who also watch forex markets should note that USD strength or surprise CPI prints could further pressure risk assets. For those running systematic strategies or automated trading, ensure risk parameters (max drawdown, per‑trade size, and volatility‑adjusted stops) are in place.
Whether you trade spot, derivatives, or run an automated trading program, monitor leverage, funding, and exchange liquidity around major supports to avoid being caught on the wrong side of forced liquidations.
Execution tools and automation
Automation can help manage entries, exits, and risk when volatility spikes. Traders using a bitcoin trading bot or a trade assistant can automate scaling, stop placement, and re‑entry logic to reduce emotional execution errors. For discretionary traders who want automated rules but still retain oversight, a Trade Assistant Bot can help implement structured trade plans across markets.
Conclusion
The $772M liquidation event has materially increased short‑term downside risk for BTC and ETH. Key supports — BTC $106,453 and the October low near $102,000, and Ether’s 61.8% retracement — deserve attention; breaks below them could accelerate selling, while holds could present tactical re‑entry opportunities. Use disciplined position sizing, clear stop rules, and be mindful of funding and leverage when trading in this environment.
If you want to test systematic approaches or reduce execution friction during volatile windows, consider testing automation tools such as our trade assistant to help implement and evaluate rule-based strategies.