Key Insights:
- Crypto market liquidations hit nearly $900 million in 24 hours, mostly from long positions.
- Total crypto market cap dropped to $3.73 trillion, with $3.69 trillion as key support.
- Large short pools above BTC and ETH prices set up a possible short squeeze if buyers return.
The crypto market slipped hard during the last 24 hours. Total value fell about 4.5% to $3.73 trillion. Prices moved fast as many leveraged traders were forced out.
Trackers showed $840 million–$904 million in crypto liquidations in 24 hours, mostly from long bets. That is a big shakeout. Now traders are asking the key question: Does this washout set up a rebound? This piece might have the answers.
What $900M in Crypto Market Liquidations Means
A liquidation is a forced close. It happens when a leveraged trade cannot cover losses. Longs are wiped out when the price drops. Shorts are wiped out when the price jumps. Large batches of liquidations often speed up a move.
In the past day, liquidation feeds showed a heavy long wipe. One data post flagged $904 million in total liquidations, with $818 million from longs. The largest single hit was $39.24 million on a BTC/USDT pair. Another tracker posted a similar total near $839.8 million. Both tell the same story: the longs were on the wrong side.
We have seen this play before. On August 1, long liquidations hit about $922 million. After that flush, new money came in and prices bounced. A flush is not a buy signal by itself. But it often clears weak hands and resets risk.
Whale flows added to the drop. One popular feed showed 50,000 BTC, roughly $6 billion, moved out by big holders over two weeks.
Another post blamed a quick 24,000 BTC sale, about $2.7 billion, for a sharp slide that set off many stops. Whether one wallet or many, that supply helped trigger the cascade.
The Levels That Can Flip the Trend for Crypto Market
Price levels matter after a washout. The total crypto market cap chart shows a clear band. The first band is $3.69 trillion.
That area acted like a floor this month. The second band is $3.83 trillion. That was broken on the way down. If the market takes back $3.83 trillion, momentum can improve fast. Above that, $3.92 trillion and $4.00 trillion are the next checkpoints.
At press time, the market sat at $3.73 trillion. That is between the floor and the reclaim line. Traders will watch how the price behaves near $3.69 trillion. Hold it, and dip buyers may step in again. Lose it, and $3.60 trillion comes into view.
Keep the split between Bitcoin and Ethereum in mind. An analysis stated Bitcoin traded near $109,742, down about 3% on the day. Ethereum slipped below $4,400, down about 9%.
A liquidation heatmap showed Ethereum took the largest daily hit at $321.62 million, more than any other coin. That scale helps explain why ETH fell more than BTC during the flush.
Where the Next Squeeze Could Come From
Liquidation maps hint at who may get squeezed next. These maps stack the dollars tied to stop-outs above and below the price.
A large green block above price means many shorts will be forced to close if price rises. A large red block below price means many longs will be forced to close if price drops.
On Bitcoin’s map, a big short pool sits near $121,000. The pile is roughly $1.41 billion in short liquidation leverage. If BTC climbs back through $115,000 and pushes toward $121,000, many shorts would have to buy back. That buying can speed up a move.
On Ethereum’s map, the short side is even larger. The cluster builds around $4,900–$5,000, with about $3.69 billion in short liquidation leverage stacked above price. One analyst summary said $1.63 billion in ETH shorts would blow out if ETH tags $5,000.
The idea is the same: a firm bounce can flip pressure onto shorts.
For the whole market, the setup is simple. $3.69 trillion is the floor to protect. $3.83 trillion is the line to win back. If the market reclaims $3.83 trillion, a squeeze can start. Shorts above the market would then face stress. That path could push total value back toward $3.92 trillion–$4.00 trillion.
None of this removes risk. Whales have sold into strength this month. If more supply hits, fresh long positions can get trapped again. But the math is clear. A large, long washout has already happened. Short pools now sit above price on both BTC and ETH. If support holds and buyers show up, crypto liquidations can quickly change from a drag into fuel for the next leg up.
Source: https://www.thecoinrepublic.com/2025/08/26/900m-crypto-market-liquidations-trigger-selloff-will-buyers-step-back-in/
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