Are Bitcoin and Ethereum about to suffer a liquidation nightmare? – Assessing…

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  • BTC and ETH are riding a bullish wave, sparking a cascade of forced deleveraging.
  • Don’t count on smooth sailing just yet.

Oh, Bitcoin [BTC] and Ethereum [ETH], those mischievous little cryptos – they came barreling through, obliterating bearish bets and inciting a liquidation frenzy on the 8th of May. We’re talking nearly $1 billion gone in the blink of an eye, with a whopping 80% of that coming from short positions. Picture this: a textbook short squeeze, but the wreckage? Not a pretty sight, my friend.

But wait, don’t pack up your bear suits just yet. The game’s not over for the short side. Far from it.

The Relative Strength Index (RSI) on both BTC and ETH? Screaming for attention. Deep into overbought territory, like a feverish guest at a party who’s had one too many. Historically, this is where momentum chokes and tactical shorts start circling like vultures. You know the drill.

And just to spice things up, fresh data from Coinglass tells us that 139,241 traders got obliterated in just 24 hours, with total liquidations hitting $328 million. Oh, but wait, the bulls are looking a little bruised, too – $170 million worth of long positions got taken to the woodshed. A classic case of late-stage volatility, folks. Enjoy the ride.

So, what now? Strap in, because this rollercoaster’s not over.

The spread is razor-thin, and technicals are flashing red

We’re entering a chop zone, people. BTC and ETH are perched above key resistance-turned-support levels, making this market a true inflection point. Get your popcorn ready.

Momentum indicators? They’re waving yellow flags like they’re trying to get your attention at a football game. RSI’s overheated, and On-Balance Volume (OBV) has started stalling. Classic signs of a retail-driven rally running on fumes. Yep, that’s right – the momentum might be out of gas.

But wait, there’s more! Open Interest (OI) has climbed by a modest 1.25%, now sitting at $137.44 billion. Leverage? Back in play, baby.

But hold your horses. That spike in OI? Not exactly the “bullish” flag you think it is. With thinning bid walls, this could be the prelude to a liquidation disaster if support crumbles. The stage is set for a fireworks show. Will we get a clean exit, or is this the beginning of a massive shakeout?

And let’s not forget ETH: it’s already seen $61.25 million in long closures within just the last 24 hours, while BTC wiped out over $600k in longs within a mere 4-hour span. It’s not a pretty picture if you’re holding the wrong side.

The $170 million long squeeze? That was merely the opening act. If this market stumbles, buckle up, because things could get ugly. Fast.

BTC and ETH: Steering the ship or sinking it?

BTC and ETH are dancing just above their local highs, and the next move depends entirely on the smart money – the whales. One word: suspense.

Whale activity at these levels? It’s a high-stakes game. Will they play the part of the heroic savior, or will they be the ones to set the trap? They’re the ones with the power to either distribute and send prices crashing, or consolidate above the supply level and send the bears running for cover.

Whale wisdom is key here. Momentum indicators are flashing exhaustion like a tired waiter ready to go home, and the opportunistic shorts are creeping in like late-night snackers. Lookonchain just spotted a whale shifting a cool $13 million USDC to Hyperliquid – shorting both BTC and ETH. Ouch. It’s a tactical move for a near-term reversal.

Unless the smart money steps in to force continuation and trap those poor bears again, the thin bid-side and weary upside momentum could easily flip the script. It’s a dangerous game, my friends. And if the bulls fumble now, we might just see the beginning of a cascading unwind, paving the way for the payback of the $1 billion in short liquidations that swept through earlier this week. Stay tuned!

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2025-05-11 11:10