- •$260M in short positions liquidated as prices rebound
- •Bitcoin and Ethereum regain key technical levels
- •Market sentiment shifts back to neutral after a volatile week
The crypto market is showing signs of recovery after a turbulent week that saw over $5 billion in long positions wiped out. In a sharp turnaround, the past 24 hours have witnessed $260 million in short positions liquidated, suggesting a short squeeze is underway.
Bitcoin (BTC) is up 2%, trading around $111,647, while Ethereum (ETH) has gained 2.1%, hovering near $4,097. These gains indicate both assets are reclaiming important support levels, signaling a potential trend reversal.
Bitcoin and Ethereum Regain Strength
Bitcoin’s recent bounce above the $111K mark puts it back in a crucial support zone, often seen as a psychological and technical pivot. Similarly, Ethereum’s move above $4,000 is restoring investor confidence in the altcoin market.
These moves are significant given the sheer scale of last week’s liquidations, which had pushed many traders into fear mode. With the Fear & Greed Index (FGI) now reading 50 — a neutral position — sentiment appears to be stabilizing.
Neutral Sentiment Returns Amid Lower Liquidations
The overall market cap is currently sitting at $4.08 trillion, with total liquidations across the market in the last 24 hours at $350 million. This figure is significantly lower than last week’s, showing signs that volatility might be cooling off.
Investors are now watching closely to see if this rebound is sustainable or just a temporary bounce. Either way, the liquidation of short positions has provided some fuel for upward momentum — at least in the short term.