The cryptocurrency market is in a highly volatile zone as long-term liquidations begin to increase. Both bitcoin and ethereum have entered the overbought zone.
According to data provided by Coinglass, total cryptocurrency liquidations increased by 70% over the past day, reaching $650 million: $366 million in long positions and $284 million in short positions.
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Only a few rising tokens, including bitcoin (btc), experienced larger short liquidations; most cryptoassets have already been recording long liquidations. This suggests a possible market-wide cooldown as the highly volatile sector is showing signs of overheating.
bitcoin recorded liquidations of $122.1 million ($37.5 million in long positions and $84.6 million in short positions) according to data from Coinglass. This was mainly due to the flagship asset's rally to a new all-time high of $81,858 with a market capitalization of $1.6 trillion today.
ethereum (eth), on the other hand, recorded $91.2 million in liquidations over the past day: $56.7 million in long positions and $34.5 million in short positions, according to Coinglass. The leading altcoin has already started its downward momentum from its three-month high of $3,241.
The majority of liquidations, worth $262 million, occurred on Binance, the largest crypto exchange by trading volume. Of this total, 59% are long positions.
Data from Coinglass shows that total cryptocurrency open interest gained 1.13% over the past day and currently stands at $91.9 billion. The global cryptocurrency market capitalization also hit a three-year high of $2.9 trillion with trading volume of over $300 billion.
bitcoin and ethereum RSIs Increase
bitcoin's rise above the $80,000 mark put it in the overbought zone as its Relative Strength Index reached 75. This usually occurs when a sudden price surge occurs, increasing the potential for profit-taking. in the short term.
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ethereum witnessed a similar move when its price surpassed $3,200 – eth's RSI is currently at 74.
The leading altcoin fell 1% in the last 24 hours and is trading at $3,150 at the time of reporting. An important reason would be the start of prolonged liquidations.
High volatility would be expected in the market before another big push due to increasing open interest, liquidations and trading volume.
Gemini co-founder Cameron Winklevoss believes the bull run has not been sparked by retail investors. On the other hand, CryptoQuant CEO Ki Young Ju claimed that the futures market has become “overheated” and could hint at a bearish 2025 in the future.
