According to Woofun AI, the cryptocurrency market is undergoing severe turbulence triggered by the collapse of leveraged long positions, with Bitcoin failing to hold the critical $81,000 price support level, resulting in a liquidation wave exceeding $1 billion across the derivatives market.
This price-driven risk release event not only ended previous rebound attempts toward the $87,000 level but also rapidly dragged market sentiment into panic territory, forcing a large number of highly leveraged traders into forced liquidation. The sharp contraction in market liquidity and the fragility of the positioning structure have been fully exposed during this decline, becoming the core contradiction in the current pricing mechanism. Notably, this liquidation was not evenly distributed but showed clear directional characteristics, with bullish positions bearing the brunt of the damage, reflecting the strong resistance and lack of confidence the market encountered after a brief rebound, planting significant uncertainty for subsequent price movements.
In terms of specific liquidation details and multi-coin performance, selling pressure has expanded across the board. As of the time of reporting, Bitcoin was trading at approximately $80,744, having dipped to near $80,000 intraday, down 3% within 24 hours and approximately 4% over the past week. This decline directly triggered $1.16 billion in total derivatives market liquidations, of which bullish position liquidations amounted to as much as $1 billion, while short liquidations were only $108 million, demonstrating the severity of the long-side stampede. Data compiled by Woofun AI shows that in just the most recent 4 hours, nearly $700 million in assets were liquidated, with $650 million coming from long positions, and a total of 166,769 investors had their positions forcibly closed within that 24-hour period.
Although Bitcoin attracted most of the attention, Ethereum (ETH) suffered the heaviest liquidation losses, with approximately $324 million in ETH positions liquidated within 24 hours, exceeding Bitcoin's $240 million. ETH price fell below the $2,500 mark, declining 4% over the same period and 9.3% for the week. The single largest liquidation occurred on the Hyperliquid platform, where one investor closed an ETH-USD position worth approximately $20 million. Other major assets were similarly unable to escape: Solana (SOL) dropped 7.2% to approximately $108.61; Ripple (XRP) fell 5.7% to $1.35; Binance Coin (BNB) declined 4.9%; and Zcash plunged 14%, becoming one of the biggest decliners among major coins. This broad-based decline indicates that market pressure far exceeds what Bitcoin's single metric reflects. A Glassnode report dated October 7 noted that the ratio of open interest to market capitalization for large altcoins has reached its highest level since the October 2025 crash, and high leverage means that if prices continue to fall, forced liquidation risk will rise sharply.
On-chain activity further confirmed this pressure, with CryptoQuant data showing that Bitcoin transferred from short-term holders to exchanges exceeded 50,000 coins during the 24-hour peak period, of which more than 29,500 coins were transferred at a loss, accounting for 59%, marking the largest loss recorded by short-term holders in nearly four months. This phenomenon stands in stark contrast to the profit-taking行情 on October 4 when Bitcoin broke through $85,000, at which time short-term holders contributed approximately 86% of Bitcoin inflows to exchanges, the highest level in a year. The shift from profit-taking to loss-selling indicates that sentiment among recent buyers is deteriorating, and the large volume of Bitcoin deposited to exchanges signals potential increased selling pressure, though these transfers do not necessarily translate into immediate sell orders, they do increase supply pressure on the market.
Regarding the technical support structure and potential liquidation risk zones, market participants are closely watching the battle over key price ranges. In a Glassnode analysis dated October 7, the Binance spot order book showed a large concentration of pending buy orders between $81,000 and $81,250, which have been accumulating since October 3, constituting the largest buy wall below the current Bitcoin price. Previously, Bitcoin failed to break through the selling pressure zone between $86,500 and $86,750, causing it to lose the buy-side support formed near $85,000, thereby making the $81,000 to $81,250 area an important defensive zone. However, concentrated buy orders do not equate to price stability, as these orders could be withdrawn at any time, and sustained selling pressure could exceed existing demand. The more critical variable lies in the liquidation distribution in the derivatives market. Glassnode analysis shows that there are a large number of possible liquidation price points between $81,700 and $83,300, and if price rebounds to that range, it could trigger a new round of long liquidations. Additionally, another large liquidation risk zone exists near $75,000, meaning that if the current support fails, prices could face a deeper decline. The current market structure exhibits the typical characteristics of "heavy selling pressure above, thin support below," and whether the buy orders at $81,000 to $81,250 can effectively absorb selling pressure will become the key to determining short-term direction. If buying power is insufficient to offset selling pressure, prices could rapidly break through this range, triggering a liquidation chain reaction in the $81,700 to $83,300 zone, and then spreading toward the deeper risk zone at $75,000. This resonance between technical levels and on-chain data reveals the high-risk state of the market in a fragile equilibrium.
Market outlook and key battlegrounds ultimately converge on $81,000 as the final focal point. Currently, the contest between buying power and selling pressure is at a fever pitch, and an imbalance on either side could lead to a sharp shift in market direction. If Bitcoin price continues to break below the $81,000 buy support zone, the risk of further decline will increase significantly, and investors may then take note of the more severe liquidation risk points identified by Glassnode, including the $81,700 to $83,300 range and the deeper liquidation zone near $75,000. Under this scenario, downside space would open up, and panic sentiment could further spread to other cryptocurrency varieties. Conversely, if buying power can successfully defend the $81,000 line, the market may see a brief stabilization and rebound, but selling pressure above and high leverage risks remain. Investors need to closely monitor on-chain capital flows and derivatives liquidation dynamics to judge substantive changes in market sentiment. At this critical juncture, the market's resilience will be severely tested, and whether $81,000 holds or breaks will become the watershed determining the next phase of price movement. For more heavyweight Hong Kong stock news, download the Zhitong Finance app. For more Hong Kong and overseas wealth management information, please visit www.zhitongcaijing.com (search "Zhitong Finance"); to join the Zhitong Hong Kong stock investment group, please add Zhitong customer service WeChat (ztcjkf).
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