Why are Bitcoin, Ethereum, and XRP still crashing?

Derivatives Bloodbath: $438 Million Goes Up in Smoke

The violence of the current movement isn’t solely explained by spot selling, but by excessive leverage that finally gave way. According to on-chain data reported by Coinpedia, the market has undergone a real cleansing.

In the span of just one hour, more than $230 million worth of Long (buy) positions were liquidated. Traders who were betting on a continuation of the rally with leverage found themselves trapped, forced to automatically sell their positions to cover their losses, which accelerated the price decline.

Over the last 24 hours, the bill is even steeper: total crypto liquidations climb to approximately $438 million. This phenomenon, known as a “Long Squeeze”, is classic after a consolidation period where trader optimism exceeds the reality of actual buying volumes.

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Bitcoin, Ethereum and XRP: Technical Supports Have Given Way

Bitcoin isn’t the only victim of this purge. By breaking the $65,000 support, the market leader sent an immediate weakness signal to altcoins. Ethereum (ETH) and XRP followed the trajectory, posting significant losses.

Technically, the loss of $65,000 for BTC is critical. This level acted as an important pivot to maintain the short-term bullish structure. By closing hourly candles below this threshold, the bears are temporarily regaining control.

For Ethereum, the correlation remains strong. Macroeconomic uncertainty and this panic movement on Bitcoin are currently preventing the asset from outperforming, despite its solid fundamentals. The market is currently in “Risk-off” mode, where capital flees volatile assets to take refuge in stablecoins while waiting for the dust to settle.

Should You Buy the “Dip” or Fear a Drop Toward $60,000?

The question everyone is now asking is what comes next. Is this retracement a golden opportunity to accumulate at low prices, or the prelude to a more severe correction toward $60,000?

From a technical analysis perspective, we’ll need to monitor the price reaction at the next major supports. If Bitcoin manages to quickly reclaim $65,000 and transform this level into support, this crash could be nothing more than a “Shakeout” designed to shake out weak hands before a new bullish impulse.

However, if selling pressure persists and buying volumes don’t materialize, the scenario of a return toward the $60,000 zone becomes credible. Caution is therefore warranted: avoid leverage in these high volatility zones and monitor daily closes.

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• Why did Vitalik Buterin sell $3.7M of Ethereum during the crash?
• XRP crash: Can the price recover after a 69% plunge?