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The cryptocurrency market is rebounding after an exceptionally volatile weekend, with major digital currencies regaining lost ground amid a sudden liquidation wave that wiped out approximately $20 billion from open positions.
As per CryptoSlate’s analysis, Bitcoin surged over 3% in the past 24 hours, trading at around $115,342 after plummeting towards $105,000 on October 10. Ethereum also experienced a significant rebound, increasing by 9% to $4,180 after its weekend plunge to near $3,500.
Among the top 10 cryptocurrencies, BNB stood out with a remarkable 16.85% increase to reach a new all-time high, while both Dogecoin and Cardano recorded gains exceeding 10%. In contrast, Tron saw a modest improvement of just 2.5%, indicating an uneven recovery across the market.
Over $600 million liquidated
Despite the price recovery, the crypto market experienced nearly 190,000 liquidations in the last 24 hours, with total losses surpassing $626 million. Notably, the largest single liquidation involved an ETH-USD position worth $7 million on Binance.
According to CoinGlass data, short sellers bore the brunt of the losses, with about $418 million lost as prices rebounded, while long traders experienced further losses totaling around $207 million as volatility continued.
Nonetheless, Timothy Misir, head of research at BRN, informed CryptoSlate that the market’s recovery illustrates a combination of short-covering and targeted accumulation.
He stated:
“Major holders are capitalizing on opportunities while many retail investors remain on the sidelines. However, the structural integrity of the market relies on steady spot demand, ETFs, treasury bonds, corporate buying, and time for liquidity to stabilize. A V-shaped recovery is feasible, but a lasting rally requires consistent absorption of selling at progressively higher prices.”
Bear signals
He pointed out that this indicates an anticipation of a tumultuous few weeks ahead, as the recent sell-off disrupted normal volatility patterns, prompting traders to hedge their positions vigorously.
Consequently, Forster mentioned that some investors are starting to entertain the possibility of Bitcoin dropping below $100,000, while Ethereum traders are notably more bearish, evidenced by significant buying of $2,600 puts for December.
He remarked:
“In BTC options, we observed substantial purchasing of $115,000 and $95,000 puts set for October 31 expiry, alongside a marked shift from call buying to selling at the $125,000 strike (October 17 expiry), indicating a bearish short-term forecast…For ETH, traders targeted the October 31 $4,000 and October 17 $3,600 strikes, while considerable buying of $2,600 puts for December 26 expiry signified increasing bearish sentiment as the year approaches its end.”
