Bitcoin Sees Historic 13,520% Long-to-Short Liquidation Imbalance Amid Easter Sell-Off

Bitcoin Liquidation Wave Intensifies Over Easter

Bitcoin traders experienced a brutal Easter Sunday as the cryptocurrency market was hit by a significant liquidation wave. Over the past four hours, Bitcoin (BTC) saw a staggering 13,520% imbalance between long and short liquidations. Long positions were disproportionately affected, with $9.62 million wiped out compared to just $71,000 in shorts. This imbalance reflects the market's heavy exposure heading into the weekend.

Market-Wide Liquidations Reach $35.35 Million

The sell-off triggered a total of $35.35 million in liquidations across the market during the same four-hour period, with 83.6% of the losses coming from long positions. Bitcoin alone accounted for $9.7 million, followed by Ethereum (ETH) at $8.2 million and Solana (SOL) at $2.45 million. Over the last 24 hours, the total liquidations reached $165.1 million, impacting over 119,000 traders.

Bitcoin Price Volatility Sparks Sharp Decline

Bitcoin's price dropped sharply, hitting lows near $83,800 before partially recovering to $84,453. The rapid pullback highlighted the dangers of overleveraged positions, with a single $5.95 million BTC/USDC position on Binance being the largest liquidation. The steep but brief price movement suggests short-term overselling, but the damage to long positions was already done.

A Cautionary Tale for Traders

The Easter Sunday sell-off serves as a stark reminder of market volatility. Traders who expected a bullish holiday weekend were instead reminded that when market sentiment is one-sided, even a small reversal can trigger a cascade of liquidations. This event underscores the risks of overleverage in a highly volatile market.