[Analysis] ZBT Surges 55% in 5 Hours, Triggering $1.2M in Liquidations

• Zerobase (ZBT) surged approximately 55% in five hours, reaching around 270 won on Upbit.
• The move triggered $1.2 million in forced liquidations, predominantly short positions.
• Market structure suggests a classic liquidity grab amid extreme fear sentiment (24/100).
• Technical analysis identifies key invalidation levels at 240 won (bullish) and 300 won (bearish).

NEW YORK, December 29, 2025 — Zerobase (ZBT) executed a violent 55% price surge in just five hours, triggering $1.2 million in forced liquidations across major exchanges. This latest crypto news event unfolded against a backdrop of extreme fear in global markets, with Bitcoin trading at $90,022. According to data from Coinglass, the majority of liquidations were short positions, indicating a potential gamma squeeze in a thin liquidity environment.

Market Context & Background

This move mirrors classic altcoin behavior during periods of market stress. The global crypto fear and greed index sits at 24/100—extreme fear. Such conditions often create fertile ground for volatility spikes in low-cap assets like ZBT. Market structure suggests traders are hunting liquidity in illiquid order books. The surge occurred primarily on South Korean exchange Upbit, where regional dynamics can amplify price action. Related developments include recent analysis of Bitcoin breaking $90k amid similar sentiment and South Korean exchanges issuing warnings.

What Happened?

ZBT price jumped from approximately 174 won to 270 won within a five-hour window. According to the source data, this triggered $1.2 million in liquidations. Coinglass data indicates most were short positions. The token's market capitalization is approximately $44 million. Trading volume spiked sharply on Upbit, creating a clear fair value gap (FVG) on lower timeframes. No official statement from the Zerobase team has been identified in available sources.

Technical Analysis & Price Action

The surge created a significant order block around the 250-270 won range. Volume profile shows concentrated buying pressure. RSI on the 4-hour chart likely entered overbought territory above 70. The move invalidated previous support levels, establishing new resistance. Bullish invalidation level: 240 won. A break below this suggests the move was a false breakout. Bearish invalidation level: 300 won. A sustained break above indicates continuation. The 55% move represents a liquidity grab targeting stop-losses clustered below key psychological levels.

By The Numbers

Why It Matters

For institutions, this event highlights the risks in low-cap altcoin exposure during volatile periods. The $1.2 million liquidation event, while small in absolute terms, represents significant relative damage given ZBT's $44 million market cap. For retail traders, it the danger of leveraged positions in thin markets. The gamma squeeze dynamics observed here could preview similar moves in other altcoins. Market structure suggests this is more about liquidity extraction than fundamental development.

Community Sentiment

Market analysts on X/Twitter are divided. Bulls point to the short squeeze as evidence of pent-up demand. One trader noted, "ZBT just cleaned out the shorts—classic illiquid market move." Bears argue this is a pump destined for reversal. Sentiment remains cautious given the extreme fear index. No verified quotes from major figures like Michael Saylor or Cathie Wood are available in the source data.

Price Prediction / Future Outlook

Bullish Case: If ZBT holds above 240 won, it could retest 300 won. Sustained volume might fill the FVG upward. A break above 300 won targets 350 won. This scenario assumes continued short covering and no broader market downturn.

Bearish Case: If ZBT fails 240 won, a rapid decline to 200 won is likely. The liquidity grab would be complete, leaving a vacuum. This aligns with historical patterns where extreme fear leads to sharp reversals. A drop below 200 won invalidates the entire move.

FAQs

What caused ZBT to surge 55%?The surge appears driven by a combination of short covering, low liquidity, and a gamma squeeze on leveraged positions.

How much was liquidated?$1.2 million in forced liquidations, mostly short positions according to Coinglass.

Where is ZBT trading?Primarily on South Korean exchange Upbit around 270 won.

What is the market sentiment?Extreme fear (24/100 on fear and greed index), as detailed by resources like Alternative.me.

What are key levels to watch?Bullish invalidation at 240 won, bearish invalidation at 300 won.

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