Crypto Market Forecast: $644M Liquidation Shakeout Resets Bitcoin and Ethereum for Next Rally

The crypto market witnessed a brutal washout over the past 24 hours, with more than $644.14 million in leveraged positions liquidated across major exchanges, according to data from CoinGlass.

Crypto Bulls Take the Biggest Hit: Ethereum, Bitcoin Suffer Highest Liquidations

Long traders bore the brunt of the carnage, losing $488.75 million compared to $155.39 million in short liquidations. The largest single wipeout occurred on OKX, involving an $8.74 million BTC-USDT swap position.

Ethereum’s native token, Ether (ETH), saw the highest liquidation volume at $179.81 million, followed by Bitcoin (BTC) with $155.59 million. Solana (SOL) and BNB (BNB) trailed with $49.64 million and $22.82 million, respectively.

The heatmap shows that most losses came from bullish bets, indicating that traders were overly leveraged on a continued uptrend before the market abruptly reversed.

Is The Crypto Market Topping Out?

Past data shows that large long-liquidation events like the recent $644 million wipeout rarely signal a bear market. They usually act as short-term leverage resets within ongoing uptrends.

Similar spikes in May, June, and July led to quick dips that were fully retraced within days, while the Sept. 19 flush only caused brief consolidation before prices climbed again.

Such events often clear excess leverage and restore market balance, paving the way for healthier rallies rather than long-term reversals.

Bitcoin Eyes $126,000 Liquidity Zone Retest in October

The latest Binance BTC/USDT liquidation heatmap shows a dense cluster of liquidation levels around $125,500 to $126,500, the brightest yellow zone on the chart.

This area represents the largest concentration of leveraged positions and remains a magnet for price action.

With Bitcoin currently rebounding from the $121,000-$122,000 range, the market appears poised for a short-term push toward $126,000, likely to clear out short positions that have built up there.

If Bitcoin breaks and holds above $126,500, the move could extend toward $128,500-$130,000, confirming renewed bullish momentum. However, a rejection at that level may trigger a $122,000 retest or even $118,000-$119,000 if selling pressure intensifies.

Where Ethereum Might Go Next

Ethereum’s chart shows two key zones traders are watching: one above $4,800 and one below $4,300. These are areas where lots of traders could get forced out of their positions, also known as liquidations.

Right now, ETH is around $4,450, sitting in the middle. It could bounce up toward $4,800 first, where many short trades might get cleared out. However, if ETH drops below $4,400, it may fall to $4,300, where buyers are likely waiting.