The cryptocurrency market has entered turbulent waters once again as mounting liquidations signal a looming bloodbath. Within the last 24 hours, over $270 million in positions have been liquidated across the market, including $5.32 million from Bitcoin alone. The broader digital asset ecosystem is feeling the pressure, with Ethereum, Solana, XRP and others facing heavy losses as well.

Bitcoin, currently trading near $85,100, shows concerning signs on the daily chart. The asset continues to struggle below key moving averages, particularly the 200 EMA, which remains a formidable resistance barrier. A failure to reclaim this technical level may result in further downside. Compounding the bearish sentiment is a rise in trading volume during price drops — a classic signal of market capitulation.

Exchanges like Binance, Bybit and OKX saw the brunt of the liquidations, indicating a marketwide sweep of leveraged positions. Notably, short positions made up the majority, suggesting many traders were caught off guard by sudden intraday spikes or misread consolidation patterns.

One catalyst behind the sell-off could be global macroeconomic uncertainty. The introduction of new trade tariffs across key economies has sparked fears of declining international trade and growth. As tariffs disrupt supply chains and weigh on equity markets, high-risk assets like cryptocurrencies are feeling the shockwaves.

The liquidation heatmap shows Bitcoin leading the charge in losses, followed closely by Ethereum and Solana. The concentration of shorts being wiped out, especially on platforms like Bitmex and CoinEx, hints at both poor risk management and heightened volatility.

Looking ahead, if Bitcoin fails to hold above the $85,000 level, another wave of liquidations could be triggered. With sentiment already shaken and technicals weakening, caution should be the priority. Until the market in general stabilizes and macro fears ease, the crypto space remains vulnerable to steep corrections.