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VADODARA, January 28, 2026 — A violent short squeeze dominated cryptocurrency perpetual futures markets over the last 24 hours. Forced liquidations totaled $195.51 million across major assets. Short positions accounted for over 80% of the volume. This daily crypto analysis reveals a classic liquidity grab amid extreme fear.
According to data from Coinness, Ethereum (ETH) saw $91.32 million in forced liquidations. Short positions constituted 82.31% of that volume. Bitcoin (BTC) followed with $79.06 million liquidated. Shorts accounted for 80.19%.
The outlier was HYPE token. It experienced $25.13 million in liquidations. A staggering 93.59% were short positions. This data indicates a market-wide squeeze against leveraged bears. The cascade likely triggered stop-loss orders and amplified volatility.
Historically, such skewed short liquidations precede trend reversals. They often mark local bottoms. The 2021 cycle saw similar patterns before major rallies. In contrast, the current environment features a Fear & Greed Index score of 29.
That score signals extreme fear. It aligns with capitulation events. Underlying this trend is high leverage in perpetual futures markets. Traders over-extended short bets. A rapid price bounce then forced them out.
Related Developments: This volatility occurs alongside other macro shifts. Morgan Stanley's E*Trade listed a Grayscale Bitcoin Mini Trust ETF this week. , South Korea's stablecoin bill has stalled, adding regulatory uncertainty.
Market structure suggests a significant Fair Value Gap (FVG) formed during the squeeze. Ethereum's price action shows a sharp rejection from the $2,950 support zone. The 4-hour chart reveals a bullish Order Block near $2,900.
On-chain data from Glassnode indicates increased exchange outflows. This suggests accumulation. The Fibonacci 0.618 retracement level from the last swing high sits at $3,150. That level now acts as immediate resistance. The Relative Strength Index (RSI) on daily timeframes remains oversold.
| Metric | Value |
|---|---|
| Total 24h Liquidations | $195.51M |
| ETH Short Liquidation % | 82.31% |
| BTC Short Liquidation % | 80.19% |
| Crypto Fear & Greed Index | 29 (Fear) |
| Ethereum Current Price | $3,006.83 |
| Ethereum 24h Change | +2.36% |
This event matters for portfolio risk management. Forced liquidations remove excessive leverage. They create a cleaner market structure. Consequently, institutional capital often enters after such washes. The Volume Profile shows high volume nodes near current prices.
Retail sentiment is deeply negative. That provides fuel for a contrarian move. , the dominance of short liquidations suggests a Gamma Squeeze dynamic. Options market makers were likely forced to hedge by buying spot. This amplifies upward momentum.
"The liquidation skew is a classic signal. Markets purge weak hands before reversing. The high short ratio indicates panic covering, not organic selling. Our models show this often precedes a 15-20% rally over the next two weeks," stated the CoinMarketBuzz Intelligence Desk.
Two data-backed scenarios emerge from current market structure.
The 12-month institutional outlook remains cautiously optimistic. Events like these reset leverage. They provide a foundation for healthier growth. For the 5-year horizon, such volatility washes are necessary. They strengthen the market's underlying architecture.

Disclaimer: The information provided is not trading advice, coinmarketbuzz.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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