$BTC $ETH ‌

THE LIQUIDATION SQUEE IS OVER — NOW BTC AND ETH HAVE TO PROVE THE RALLY IS REAL

The crypto market has just experienced a powerful leverage reset, with roughly $800M in futures positions wiped out in 24 hours. The striking detail is the composition: nearly 92% of those liquidations came from shorts. That means the latest rally was not simply a gradual wave of organic buying; a major part of the acceleration came from bearish traders being forced out as prices moved sharply higher.

This is how the squeeze became self-reinforcing. BTC and ETH moved higher, short positions approached liquidation, exchanges closed those positions through forced buying, and that additional demand pushed prices even further upward. The result was a rapid expansion in momentum across the broader market.

Bitcoin has become the center of the move, trading around $79K after a roughly 10% daily advance and a much stronger weekly recovery. Ethereum has also accelerated, trading near $2,440 with approximately 30% weekly gains. Total crypto market activity has expanded significantly, while Bitcoin dominance remains above 60%, showing that capital is still heavily concentrated in the market leader.

But this is where I would stop chasing the excitement.

The market is now technically stretched. BTC is trading above its upper Bollinger Band, while short-term RSI readings are extremely elevated and the daily RSI is deep inside overbought territory. ETH is showing a similar structure. Strong momentum can remain overbought, but after such an aggressive move, the probability of consolidation or a sharp shakeout increases.

The derivatives market makes the warning even clearer.

Bitcoin open interest has climbed toward $57B, while Ethereum open interest is around $32B. Funding has also moved higher, meaning traders are increasingly paying to maintain bullish leveraged positions. This creates an important transition: the shorts have already been squeezed, and if too many traders now build aggressive longs expecting an uninterrupted rally, the next liquidation wave could come from the opposite side.

That is the risk I am watching.

For BTC, $80K is the immediate psychological battlefield. A clean breakout with strong volume could open the path toward $85K–$90K. For ETH, holding the $2,400–$2,450 region and breaking higher could put $2,650–$2,750 into focus.

But I would not expect a straight-line move.

A controlled 5–8% pullback would not automatically invalidate the bullish structure. In fact, it could be constructive if it resets leverage, cools momentum indicators and creates a stronger support base.

My approach here is simple: protect existing profits, avoid adding aggressive leverage after a vertical squeeze, and wait for confirmation rather than buying purely because price is moving fast.

For BTC, the $72K–$74K region becomes an interesting area to watch if a deeper retracement develops. For ETH, $2,280–$2,320 could become an important demand zone.

The bigger message from this liquidation event is not “the market must keep going up.”

It is that the market has undergone a major positioning reset.

The bears were forced out.

Now the bulls need to prove they can keep buying without liquidation pressure doing the work for them.

If spot demand takes over, the rally can extend toward BTC $85K–$90K and ETH $2,650–$2,750.

If leverage becomes overcrowded and momentum stalls, expect volatility.

My bias remains bullish on the broader trend, cautious on the immediate entry.

The squeeze created the breakout.

Now real demand has to sustain it.

#BTCETHReboundTradeIdeas
@Gate_Square