[Analysis] Bitcoin Futures Liquidations Hit $82M Amid Extreme Fear Market

• Bitcoin futures liquidated $82.12 million in 24 hours, with 68.46% being long positions.
• Ethereum saw $56.43 million in liquidations, while Solana recorded $10.37 million with 93.35% longs wiped.
• Global crypto sentiment registers "Extreme Fear" at 23/100, the lowest reading since October 2025.
• Technical analysis identifies $85,200 as Bullish Invalidation and $88,500 as Bearish Invalidation.

NEW YORK, December 30, 2025 — Latest crypto news reveals a significant liquidity grab across major crypto perpetual futures markets, with Bitcoin leading $82.12 million in liquidations over the past 24 hours. Market structure suggests coordinated selling pressure targeting over-leveraged long positions as global sentiment plunges to "Extreme Fear." This data, sourced from Coinness, indicates a classic shakeout event preceding potential volatility expansion.

Market Context & Background

Futures liquidations at this scale typically occur during market inflection points. The current pattern mirrors the January 2025 correction when $120 million in Bitcoin liquidations preceded a 15% rally. Market structure suggests these events create Fair Value Gaps (FVGs) that institutional algorithms exploit for liquidity grabs. The Extreme Fear reading of 23/100 represents the most pessimistic sentiment since the October 2025 regulatory announcements from the SEC regarding spot ETF custody requirements.

Related developments include ongoing tests of Bitcoin's $87,000 support level and potential institutional positioning ahead of major tech wallet launches.

What Happened?

According to on-chain data from Coinness, estimated liquidation volumes for December 29-30, 2025 show Bitcoin dominating with $82.12 million liquidated. Position ratios reveal 68.46% were long positions, indicating bulls were disproportionately squeezed. Ethereum followed with $56.43 million liquidated (58.64% longs), while Solana recorded $10.37 million with a staggering 93.35% long bias. These figures represent the highest single-day liquidation cluster since November 2025.

The liquidation cascade coincided with Bitcoin's price decline to $86,989, representing a 2.32% drop. Market analysts attribute this to profit-taking at yearly highs and deleveraging ahead of quarterly options expiry. No specific catalyst was identified, suggesting technical rather than fundamental drivers.

Technical Analysis & Price Action

Bitcoin currently trades at $86,989, testing the 50-day exponential moving average at $87,200. The Relative Strength Index (RSI) sits at 42, indicating neutral momentum with bearish bias. Volume profile shows significant accumulation between $85,000 and $87,000, creating a strong support zone.

Critical Fibonacci retracement levels from the November low of $78,500 to December high of $92,400 place the 0.382 level at $86,800—currently acting as immediate support. The 0.618 level at $84,200 represents secondary support. Resistance clusters at $88,500 (previous swing high) and $90,000 (psychological level).

Bullish Invalidation: A sustained break below $85,200 (Volume Profile Point of Control) would invalidate the current consolidation structure, potentially triggering further liquidations toward $82,000.

Bearish Invalidation: A reclaim above $88,500 with increasing volume would suggest the liquidation event has flushed out weak hands, setting up for a potential gamma squeeze toward $90,000.

By The Numbers

Why It Matters

For institutions, these liquidations represent opportunity. Large-scale long squeezes often create Order Blocks where smart money accumulates at discounted prices. The Extreme Fear sentiment typically precedes mean reversion rallies, as documented in historical data from the Federal Reserve's financial stability reports on crypto volatility.

For retail traders, the disproportionate long liquidations serve as a warning against over-leverage during high volatility periods. The Solana data (93.35% longs liquidated) particularly highlights altcoin vulnerability during broad market deleveraging events.

Community Sentiment

Market analysts on X/Twitter are divided. Bulls argue this is "healthy correction" that removes excessive leverage before the next leg up. One quant trader noted, "Liquidation clusters at support often mark local bottoms." Bears point to the Extreme Fear reading and suggest further downside toward $84,000. No specific person was quoted in the source material, but sentiment aligns with historical patterns during similar liquidation events.

Price Prediction / Future Outlook

Bullish Case: If Bitcoin holds above $85,200 and reclaims $88,500, the liquidation event could be complete. Market structure suggests a potential rally toward $92,000 by mid-January 2026 as leveraged positions rebuild. The Extreme Fear reading historically precedes 20-30% rallies within 30 days.

Bearish Case: Failure to hold $85,200 could trigger cascading liquidations toward $82,000. This would confirm a breakdown of the current range, potentially testing the 200-day moving average at $80,500. Continued long dominance in futures positioning suggests further squeeze potential.

FAQs

What causes crypto futures liquidations?Liquidations occur when positions lack sufficient margin to maintain leverage during price movements. Exchanges automatically close positions to prevent negative balances.

Why are long positions more frequently liquidated?During downturns, over-leveraged bulls get squeezed first. The current 68.46% long ratio for Bitcoin indicates excessive bullish positioning relative to market direction.

How does the Fear & Greed Index work?The index aggregates multiple metrics (volatility, volume, social media, surveys) to score sentiment from 0-100. Readings below 25 indicate "Extreme Fear" and potential buying opportunities historically.

What is a Fair Value Gap (FVG)?An FVG forms when rapid price movement leaves an imbalance between buy and sell orders. Algorithms target these gaps for liquidity, often creating reversal points.

Should I trade during high liquidation periods?Analysts suggest caution. High volatility and unpredictable squeezes make risk management critical. Historical patterns indicate waiting for confirmation above/below key levels reduces false signals.

Data source: Read Original Report

Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.