Long Positions Dominate $48M Crypto Liquidations: Daily Crypto Analysis

VADODARA, January 20, 2026 — Over the past 24 hours, forced liquidations totaling $48.14 million have swept through cryptocurrency perpetual futures markets, with long positions accounting for the majority of losses. This daily crypto analysis examines the market structure implications, historical parallels, and technical levels defining the current volatility. According to data from Coinness, Ethereum (ETH) saw $27.07 million in liquidations, with longs comprising 83.16%, while Bitcoin (BTC) experienced $14.59 million, with longs at 65.29%. The outlier was DUSK, where $6.48 million in liquidations were dominated by short positions at 65.79%.

Market Context & Background

Market structure suggests this liquidation event mirrors the 2021 correction, where leveraged long positions were systematically unwound during a period of high funding rates and overbought conditions. Similar to the 2021 scenario, current on-chain data indicates excessive retail leverage on platforms like Binance and Bybit, creating a liquidity grab opportunity for market makers. Historical cycles show that such events often precede a consolidation phase, as weak hands are flushed out and order blocks are established at lower price levels. The dominance of long liquidations in major assets like ETH and BTC points to a classic gamma squeeze reversal, where options market dynamics exacerbate spot price moves.

Related developments in market structure include recent Binance margin delistings signaling liquidity consolidation and Bitcoin holders selling at a loss for 30 days, indicating capitulation signals.

What Happened?

According to the primary data from Coinness, forced liquidations in the cryptocurrency perpetual futures market over the past 24 hours were concentrated in three assets. Ethereum led with $27.07 million, of which long positions accounted for 83.16%. Bitcoin followed with $14.59 million, with longs at 65.29%. DUSK presented a counter-trend move, with $6.48 million in liquidations dominated by short positions at 65.79%. This data, sourced from exchange APIs and aggregated by analytics providers, reflects real-time margin calls triggered by price volatility below critical support levels. The total liquidation value of $48.14 million represents a significant liquidity event, though smaller than the $500 million daily peaks seen during the 2022 bear market.

Technical Analysis & Price Action

Technical analysis reveals that Ethereum's current price of $3,185.15 is testing a key Fibonacci support level at $3,150, derived from the 0.618 retracement of its recent rally. The Relative Strength Index (RSI) on the 4-hour chart is at 38, indicating neutral momentum but with bearish divergence from earlier highs. The 50-day moving average at $3,300 acts as immediate resistance, while the 200-day moving average at $2,950 provides longer-term support. Volume profile analysis shows high trading activity around $3,100, suggesting this level as a potential order block for institutional accumulation.

Bullish Invalidation Level: A break below $3,100 would invalidate the current bullish structure, signaling further downside toward $2,800.

Bearish Invalidation Level: A reclaim above $3,400 would negate the bearish momentum, indicating a resumption of the uptrend.

By The Numbers

Why It Matters

This liquidation event matters because it highlights the fragility of leveraged positions in a high-volatility environment. For institutional investors, the flush of long positions creates Fair Value Gaps (FVGs) below current prices, offering entry points for accumulation. According to Federal Reserve research on market liquidity, such events can reduce systemic risk by clearing overleveraged speculators. For retail traders, the dominance of long liquidations serves as a warning against excessive margin use, particularly in assets like ETH where funding rates have been elevated. The divergence with DUSK, where shorts were liquidated, indicates sector-specific dynamics, possibly tied to upcoming protocol upgrades or regulatory announcements.

Community Sentiment

Market analysts on X/Twitter are interpreting this data as a sign of short-term pain but long-term opportunity. One quant trader noted, "Liquidity grabs like this set the stage for the next leg up, as weak hands exit and strong hands accumulate." Another analyst pointed to the high long liquidation ratio in ETH as evidence of a "gamma squeeze unwind" following recent options expiry. Sentiment is broadly cautious, with many emphasizing the need to monitor on-chain metrics like exchange outflows and miner revenue to confirm whether this is a healthy correction or the start of a deeper downtrend.

Price Prediction / Future Outlook

Bullish Case: If Ethereum holds the $3,100 support and the Fear & Greed Index rebounds above 50, a rally toward $3,600 is plausible. This scenario assumes that the liquidation event has sufficiently reset leverage, allowing for a clean breakout above the 50-day moving average. Upcoming developments like Ethereum's Pectra upgrade could provide fundamental catalysts.

Bearish Case: If $3,100 fails as support, a drop to the 200-day moving average at $2,950 is likely. This would be exacerbated by continued long liquidations and a decline in network activity metrics. A break below $2,800 could trigger a broader market correction, similar to the Q3 2022 downturn.