Introduction
Cryptocurrency markets have staged a dramatic reversal, with Bitcoin surging past $68,000 just days after plunging to a multi-week low. This sharp recovery, fueled by aggressive accumulation from large investors known as ‘whales,’ has propelled major altcoins like Ethereum and Solana to double-digit gains. The rally has triggered nearly $400 million in liquidations, overwhelmingly from short positions caught off guard by the sudden bullish momentum.
Key Points
- Bitcoin recovered from a multi-week low of $62,500 to $68,000, driven by whale accumulation per the BTC CVD indicator.
- Altcoins outperformed: Ethereum gained 10%, SOL surged 12%, and tokens like FIL and DOT rallied over 20% daily.
- Short positions bore the brunt of liquidations, with nearly $400 million wiped out—$300 million from BTC and ETH shorts alone.
Bitcoin's Whales Spark Explosive Reversal
The weekend saw Bitcoin tumble to $62,500, a decline attributed to market uncertainty following new US tariff announcements. However, the narrative shifted rapidly as the asset exploded off that local bottom, climbing to $68,000 and marking a gain of over 6% in a 24-hour period. According to on-chain data shared by analyst CW, this surge was driven by ‘explosive buying’ from whales, as indicated by the BTC Cumulative Volume Delta (CVD) indicator. The data suggests that while large investors aggressively bought the dip, retail participation remained minimal.
A significant technical development noted in the analysis is the disappearance of the selling wall at the $70,000 resistance level. This indicates that buying pressure has intensified while key resistance has weakened, potentially clearing a path for further upward movement. The swift recovery from the $62,500 support level underscores the market’s resilience and the influential role of institutional-scale capital in setting short-term price direction.
Altcoins Outperform with Double-Digit Surges
The bullish momentum was not confined to Bitcoin. Ethereum, the leading altcoin, rocketed by over 10% daily to trade well above $2,000, having successfully retested the $1,800 support level. Analyst Ali Martinez suggested that Ethereum may have either already found its market bottom or is very close to doing so, adding fundamental optimism to its technical rebound.
Other major cryptocurrencies posted even more impressive gains. Solana (SOL) led the large-cap altcoins with a pump of over 12%. XRP jumped 7% to reclaim a crucial support level above $1.45, with many analysts viewing the $1.36 mark as a key determinant for its future momentum. Dogecoin (DOGE) followed with a 10% gain. The rally extended to tokens like Filecoin (FIL), Polkadot (DOT), Morpho (MORPHO), Aptos (APT), and Uniswap (UNI), all of which saw daily increases exceeding 20%.
Massive Liquidations Wipe Out Short Positions
The violent market upswing resulted in significant pain for traders betting against the rally. Data from CoinGlass shows the total value of liquidated positions jumped to nearly $400 million in a single day. Short positions bore the lion’s share of this wreckage, accounting for the vast majority of the losses. Specifically, Bitcoin and Ethereum short positions were liquidated for a combined value of almost $300 million.
Over 100,000 traders were affected by these liquidations. The single-largest liquidation order, valued at $11.32 million, occurred on the Hyperliquid exchange. This data highlights the high-risk, leveraged nature of the current crypto trading environment, where rapid price movements can trigger cascading liquidations, amplifying volatility and reinforcing the prevailing trend.
📎 Related coverage from: cryptopotato.com
