The crypto market just staged a massive comeback. But the calm won’t last long.
Over the past 24 hours, the total crypto market cap climbed more than 3%, hitting $2.5 trillion — a level not seen since early February. That sounds like great news. And for bulls, it was. For short sellers, though, it was a disaster.
Now analysts are warning the real turbulence hasn’t even started yet.
Short Sellers Got Crushed in the Rally
When prices shoot up fast, traders betting on a decline get forced out of their positions. That’s exactly what happened here.
According to CoinGlass data, 93,887 traders were liquidated in the past 24 hours alone. Total losses hit $367.79 million. The overwhelming majority of those were short positions — people who expected prices to fall.
Ethereum led the carnage at $140.1 million in liquidations. Bitcoin wasn’t far behind at $129.78 million.
Both assets crossed into price zones where massive short positions had been stacking up for weeks. Bitcoin surged past $73,695. Ethereum topped $2,236. At those levels, forced buybacks from liquidated shorts created even more upward pressure. That self-reinforcing cycle is called a short squeeze — and it hit hard.
Long Positions Now Dominate the Market
Here’s where things get interesting. And a little scary.
On-chain data from Alphractal shows that after the short squeeze, the balance of open leveraged positions has flipped dramatically. Long positions — bets on further price increases — now dominate. Bitcoin sits at a 63% long-heavy reading. Ethereum is even more skewed at 71%.
That means most remaining leveraged traders are now positioned for prices to keep climbing. Which sounds bullish. But it also creates a serious risk in the other direction.
The key long liquidation levels for Bitcoin sit around $64,443 and $61,637. For Ethereum, those danger zones land near $2,221 and $1,979. Any sharp pullback toward those levels could trigger a cascade of forced selling — basically a reverse version of what just happened to the shorts.
Alphractal Founder Warns of Sharp Volatility Ahead
Joao Wedson, the founder of on-chain analytics firm Alphractal, didn’t sugarcoat his outlook.
“Prepare yourself, this week will bring a lot of volatility in the crypto market,” he said directly.
The reasoning is straightforward. The largest cluster of unliquidated positions is now longs. So the market sits in a delicate spot. A strong push higher could flush out any remaining short resistance. But a sudden reversal could trigger long liquidations just as aggressively as the short squeeze played out going up.
Either way, big moves are coming. The question is just which direction they hit first.
What This Means for Traders Right Now
Volatility works both ways. The past 24 hours rewarded bulls and punished bears. Next week could easily flip that script — or extend the momentum even further.
The short squeeze confirmed serious buying pressure exists in this market. Crossing $2.5 trillion in market cap signals real confidence returning after weeks of weakness. That’s not nothing.
But with long positions this heavily stacked, the market is sitting on a loaded spring. If macro news shifts, if Bitcoin stalls at resistance, or if any significant catalyst spooks traders, those cascading long liquidations could wipe out gains fast.
The smartest move right now isn’t picking a direction. It’s managing your risk like the floor might drop out — because according to the on-chain data, it genuinely could. Stay nimble, keep position sizes sensible, and watch those key liquidation levels closely. They’re the trip wires for whatever comes next.