Bitcoin [BTC] and Ethereum [ETH] Steamroll Bearish Bets, Igniting Nearly $1B in Liquidations

Bitcoin [BTC] and Ethereum [ETH] powered through bearish bets on the 8th of May, sparking nearly $1 billion in liquidations.

The majority of the liquidations, an astounding 80%, were short positions, setting the stage for a textbook short squeeze.

While the image of the bear market wreckage is truly brutal, it might be too early to say game over for the bears just yet.

Relative Strength Index (RSI) on both major cryptocurrencies went deep into overbought territory, signaling that momentum could be slowing down.

Moreover, with both BTC and ETH trading above key resistance-turned-support levels, the market is at a critical juncture.

According to fresh data from Coinglass, 139,241 traders were liquidated in the past 24 hours, leading to overall liquidations of $328 million.

Despite the bullish momentum, it was the longs who took a bigger hit, with $170 million in longs liquidated.

The spread is razor-thin, and technicals are flashing red

On-Balance Volume (OBV) began to stall, another indication that the retail-led rally might be running out of steam.

At the same time, Open Interest (OI) increased by 1.25% to reach $137.44 billion, indicating that leveraged exposure is returning.

However, with bid walls thinning, this spike in OI could also be setting the stage for a liquidation cascade should support falter.

ETH saw $61.25 million in longs closed in the past 24 hours, and BTC had over $600k in longs wiped out in the 4-hour timeframe.

The $170 million long squeeze might have just been the opening act, and if the market stumbles, things could get messy quickly.

BTC and ETH: Steering the ship or sinking it?

As BTC and ETH trade close to local highs, the next move depends on how smart money deploys.

Whale activity at these levels usually signals one of two scenarios: A distribution trap or a controlled consolidation above supply.

Either way, the order books will be tested, and it’s the whales who will decide whether this is re-accumulation or exit liquidity.

With momentum indicators signaling exhaustion, opportunistic shorts are stepping in.

Recently, Lookonchain data spotted a whale moving $13 million USDC to Hyperliquid, engaging in short positions on both BTC and ETH—a tactical bet on a near-term price reversal.

Unless smart money intervenes to continue the rally and trap bears again, the thin bid-side and exhausted upside momentum could shift the narrative.

If the bulls falter at this point, it could lead to a cascading unwind, ultimately leading to a payback for the $328 million in short liquidations seen earlier this week.