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The cryptocurrency market recorded more than $841 million in total forced liquidations during the last 24 hours leading to Friday, May 30, during the late North American trading session. As Bitcoin (BTC) price dropped below $105k, the wider altcoin market led by the memecoins recorded heavy forced liquidation of long-leveraged traders.
According to market data from Coinglass, more than $747 million in forced crypto liquidations involved long traders. The forced liquidations of Bitcoin’s whale-long traders, led by James Wynn, triggered further short-term pessimism.
Meanwhile, the short crypto traders recorded around $80 million in forced liquidations during the past 24 hours. As a result, the odds of a long squeeze escalated despite the overall optimism of a market rebound over the weekend.
What Next for the Altcoin Market
The optimism of a crypto rebound in the coming few days remains evident amid the ongoing bloodbath. Bitcoin’s fear and greed index hovered around 60 percent, signaling greed among crypto traders.
The improving crypto regulatory frameworks in major jurisdictions, led by the United States, has attracted more institutional investors in the web3 space. As a result, it is evident that more crypto investors are anticipating a bullish rebound in the coming days, potentially a parabolic rally in the near future.
However, the ongoing bearish sentiment may likely delay a bullish rebound, especially if Bitcoin price drops below $100k again in the coming days. Nonetheless, the notable surge of bearish traders will likely trigger a major short squeeze of Bitcoin price rebounds above $110k in the coming days. The crypto bullish outlook has a higher ground catalyzed by rising adoption from institutional investors and favoring regulatory frameworks from major jurisdictions. As a result, a wait-and-see strategy could apply in the coming days, if and only if the Bitcoin price will not drop below $96k.
