Abnormal 3,368% Liquidation Imbalance Stuns Bitcoin Bears in Hourly Bloodbath

Significant Bitcoin Short Liquidations Amid Modest Price Increase

Wednesday saw an unexpected surge in Bitcoin (BTC) short liquidations, spiking by 3,368% in just one hour. During this window, roughly $3.27 million in short positions were liquidated—far outpacing long liquidations of just $97,000. This marked one of the most disproportionate liquidation events in recent weeks.

What makes this development particularly notable is that it occurred without any major news or extreme market movements. The trigger was a modest price increase, with BTC climbing from just over $106,400 to slightly below $107,400. While this pushed Bitcoin closer to its January all-time high of $109,114.88, it also forced overleveraged short traders to exit their positions.

The lopsided liquidation ratio suggests many shorts were positioned with tight stop-losses or excessive leverage, despite the relatively small price movement. This reaction underscores the current market's sensitivity to positioning and leverage.

Zooming out, the broader crypto market saw $239.47 million in liquidations over the past 24 hours, with shorts bearing the brunt of the damage. During the peak one-hour BTC spike, $11.01 million in positions were liquidated—$10.29 million of which were shorts. This trend persisted throughout the day, signaling a broader unwinding of bearish bets rather than an isolated event.

As Bitcoin nears its all-time high resistance level, traders on both sides may face tighter conditions in the coming days, potentially fueling increased volatility and further positioning adjustments.