Crypto Liquidations Hit $2.65 Billion in the Past 24 Hours, but Bears May Be Near Capitulation

Core Insights - The crypto market is experiencing significant liquidation events, with over $2.65 billion liquidated in just 24 hours, indicating structural weaknesses within the market [2][4] - A recent analysis suggests that the current downturn is not a short-term shock but a structural decline that has been developing since October of the previous year [3][4] - The market is facing challenges such as weak liquidity, negative sentiment, and cascading liquidation pressures, which are creating a recurring cycle of damage to market sentiment [4] Liquidation Events - Total liquidations in the crypto market reached $2.65 billion in the last 24 hours, with long positions accounting for more than $2.2 billion of this total [2] - The smallest event in the Top 10 Crypto Liquidation Events occurred on January 31, with $2.56 billion in liquidations, suggesting potential for a reshuffle in rankings [3] Market Conditions - Bitcoin's market depth has decreased to only 30% of its peak in October, contributing to intraday price swings of up to $10,000 [4] - The current market environment mirrors the post-FTX collapse seen in 2022, highlighting ongoing vulnerabilities [4] Technical Analysis - Veteran technical analyst Peter Brandt forecasts that Bitcoin could trade within a "banana peel" range, with potential support near $42,000 [6]