$20 million liquidation in 1 hour, 96% of short positions wiped out: market signals behind the bloodbath

According to the latest news, a total of 20.28 million USD was liquidated across the entire network in the past hour, with short positions accounting for 19.50 million USD, representing a high proportion of 96%. In this “unilateral slaughter,” BTC experienced the largest liquidation, reaching 12.78 million USD, indicating that market bearish sentiment has suffered a severe blow.

Liquidation Data Interpretation

Why are short positions being targeted

The liquidation in this hour exhibits clear structural characteristics:

The extremely high proportion of short liquidations indicates that the market has accumulated a large number of short positions. When prices rise, these short positions are concentrated and closed, creating a chain reaction. According to relevant information, BTC increased by 0.77% in the past hour. Although the gain is modest, it is enough to trigger many stop-loss points for shorts.

Dominance of BTC Liquidation

BTC liquidated 12.78 million USD, accounting for 63% of the total network liquidation. This reflects several phenomena:

• BTC is the most liquid trading pair in the market, making it easier to form large positions
• Price fluctuations in BTC trigger the strongest chain liquidation effects
• Short positions on BTC are the largest in scale

In comparison, ETH liquidated 2.31 million USD, demonstrating BTC’s absolute dominance in the market.

Market Background Analysis

Sufficient liquidity but fragile sentiment

According to the latest data, BTC’s current price is $91,661.45, with a market capitalization of $1.83 trillion, accounting for 58.58% of the entire crypto market. Such a market cap ensures ample liquidity.

In the past 24 hours, net inflow of 1,348.39 BTC into CEXs, with OKX net inflow of 2,032.70 BTC, and Coinbase Pro net inflow of 244.26 BTC. This indicates that market participants are continuously adding to their positions, providing sufficient liquidity.

Liquidation distribution at key price levels

Based on the liquidation chart data from relevant information, there is a large accumulation of liquidations at key price levels:

• If BTC falls below $86,189, long liquidations will reach $1.464 billion
• If BTC breaks through $95,113, short liquidations will reach $1.327 billion

This means that within the trading range of $86,000 to $95,000, both longs and shorts have accumulated substantial positions. Any breakout in either direction could trigger a chain of liquidations.

Market Signal Interpretation

Bearish sentiment being challenged

96% of the liquidations come from shorts, indicating that bearish sentiment in the market is being gradually suppressed. This may reflect two signals:

• Shorts are overly pessimistic about the future, with excessive positions piled up
• Recent slight upward movements are enough to create pressure but are not yet enough to change the overall trend

Possible market directional choices

Based on the liquidation chart data, BTC is in a “liquidation vacuum” between $86,000 and $95,000. If the price can break through $95,113, it will trigger large-scale short liquidations, potentially pushing the price higher. Conversely, if it falls below $86,189, it will trigger long liquidations, increasing downward pressure.

Summary

The $20 million liquidation event in this hour essentially reflects the forced closure of over-accumulated short positions in the market. Although current price fluctuations are modest, sufficient liquidity and sensitive liquidation mechanisms mean that even small movements can trigger large liquidations. For traders, the key is to closely monitor the $86,000 and $95,000 levels, as breakthroughs at these points will determine subsequent liquidation directions and market trends.