• BTC and ETH are riding a bullish wave, sparking a cascade of forced deleveraging.
• Don’t count on smooth sailing just yet.

Bitcoin [BTC] and Ethereum [ETH] steam rolled bearish bets, igniting nearly $1 billion in liquidations on the 8th of May, with a brutal 80% coming from short positions. It’s a textbook short squeeze, and the wreckage isn’t pretty.

But here’s the twist: It might not be game over for the bears.

RSI on both majors was screaming overheated – we’re talking deep into overbought territory. Historically, that’s where momentum stalls and tactical shorts start circling.

In fact, fresh Coinglass data showed 139,241 traders got blown out in 24 hours, with total liquidations at $328 million. 

And despite bullish momentum, it was the longs who took the bigger gut punch, coughing up $170 million. That kind of whipsaw? Classic late-stage volatility.

So what’s next?

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

We’re entering a high-stakes chop zone. With BTC and ETH perched above key resistance-turned-support levels, the market’s at an inflection point.

Momentum indicators are flashing caution: At press time, RSI was overheated, and On-Balance Volume (OBV) started to stall – classic signs of a retail-driven rally running on fumes. 

At the same time, Open Interest (OI) climbed 1.25% to $137.44 billion, signaling leveraged exposure is back in play.

That’s not inherently bullish. In fact, with thinning bid walls, this spike in OI could be laying the groundwork for a liquidation cascade if sup

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Author: Ritika Gupta