Crypto liquidations reach $650m; BTC, ETH enter the overbought zone

The crypto market is hovering in highly volatile territory as long liquidations begin to increase. Bitcoin and Ethereum have entered the overbought zone.

According to data provided by Coinglass, total crypto liquidations increased by 70% over the past day, reaching $650 million; $366 million long and $284 million short position.

Crypto liquidations | Source: Coinglass

Only a few emerging tokens, including Bitcoin (BTC), have seen an increase in short-term liquidations; The majority of crypto assets are already recording prolonged liquidations. This signals a potential market-wide cooling period as the highly volatile sector shows signs of overheating.

According to Coinglass data, Bitcoin saw $122.1 million in liquidations, including $37.5 million long and $84.6 million short. This is largely due to the flagship asset rising to an all-time high of $81,858 today, with a market cap of $1.6 trillion.

On the other hand, Ethereum (ETH) recorded liquidations of $91.2 million in the past day, according to Coinglass; $56.7 million long and $34.5 million short position. The leading altcoin started its downward momentum from a three-month high at $3,241.

The majority of liquidations, worth $262 million, occurred on Binance, the largest crypto exchange by trading volume. 59% of this number are long positions.

Data from Coinglass shows that total crypto open interest increased by 1.13% in the past day and currently stands at $91.9 billion. The global cryptocurrency market value also reached $2.9 trillion, the highest level in three years, with a transaction volume of over $300 billion.

Bitcoin and Ethereum RSIs are rising

Bitcoin’s rise above $80,000 has placed it in the overbought zone, with the Relative Strength Index reaching 75. This usually occurs when there is a sudden price increase, increasing the possibility of taking short-term profits.

BTC and ETH prices and RSIs | Source: Santiment

Ethereum witnessed a similar move as its price surpassed $3,200; ETH RSI is currently at 74.

The leading altcoin is down 1% in the last 24 hours and is trading at $3,150 at the time of reporting. One of the most important reasons for this may be the start of long liquidations.

High volatility in the market can be expected before a new big move due to increased open positions, liquidations and trading volume.

Gemini co-founder Cameron Winklevoss believes the bull run was not triggered by retail investors. On the other hand, CryptoQuant CEO Ki Young Ju claimed that the futures market is “overheating” and could point to a decline in the coming 2025.