According to Woofun AI, the cryptocurrency market is undergoing violent turbulence triggered by the collapse of leveraged long positions, as Bitcoin failed to hold the critical price support level of $81,000, unleashing a liquidation wave exceeding $1 billion across the derivatives market.

This price-driven risk release event not only ended a previous rebound attempt toward the $87,000 level, but also rapidly dragged market sentiment into panic territory, forcing a large number of highly leveraged traders into mandatory liquidation. The sharp contraction in market liquidity and the fragility of the positioning structure were fully exposed during this decline, becoming the core contradiction in the current pricing mechanism.

Notably, the liquidations were not evenly distributed but showed a clear directional bias, with bullish positions bearing the brunt of the damage, reflecting the strong resistance and lack of confidence encountered after the brief rebound, which has sown significant uncertainty for subsequent price movements.

Looking at the specific liquidation details and multi-coin performance, selling pressure has expanded across the board. As of the time of reporting, Bitcoin was trading at approximately $80,744, having dipped to near the $80,000 low intraday, down 3% within 24 hours and approximately 4% over the past week. This decline directly triggered a total of $1.16 billion in derivatives market liquidations, of which bullish position liquidations amounted to as much as $1 billion, while short liquidations were only $108 million, demonstrating the severity of the long squeeze. Data compiled by Woofun AI shows that in just the most recent 4 hours, nearly $700 million in assets were liquidated, with $650 million coming from long positions, and a total of 166,769 investors had their positions forcibly closed within the 24-hour period.

Although Bitcoin attracted most of the attention, Ethereum (ETH) suffered the most severe liquidation losses, with approximately $324 million in ETH positions liquidated within 24 hours, exceeding Bitcoin's $240 million. ETH price fell below the $2,500 threshold, declining 4% during the same period and 9.3% for the week. The single largest liquidation occurred on the Hyperliquid platform, where one investor closed out an ETH-USD position worth approximately $20 million. Other major assets were similarly unable to escape: Solana (SOL) dropped 7.2% to approximately $108.61; Ripple (XRP) fell 5.7% to $1.35; Binance Coin (BNB) declined 4.9%; and Zcash plunged 14%, becoming one of the biggest decliners among major coins. This broad-based decline indicates that market pressure far exceeds what Bitcoin's单一 indicator alone reflects.

A Glassnode report dated October 7 noted that the ratio of open interest to market capitalization for large altcoins has reached its highest level since the October 2025 crash, and high leverage means that if prices continue to fall, forced liquidation risks will rise sharply. On-chain activity further confirmed this pressure, with CryptoQuant data showing that the number of Bitcoins transferred from short-term holders to exchanges exceeded 50,000 during the 24-hour peak period, of which more than 29,500 were transferred at a loss, accounting for 59% 鈥?the largest loss recorded by short-term holders in nearly four months. This phenomenon stands in stark contrast to the profit-taking行情 on October 4 when Bitcoin broke through $85,000, at which time short-term holders contributed approximately 86% of exchange inflows, the highest level in a year. The shift from profit-taking to loss-selling indicates that sentiment among recent buyers is deteriorating, and the large volume of Bitcoin deposited to exchanges signals potential selling pressure ahead. Although these transfers do not necessarily translate into immediate sell orders, they add supply pressure to the market.

Regarding the technical support structure and potential liquidation risk zones, market participants are closely watching the battle over key price ranges. Glassnode's analysis on October 7 pointed out that Binance's spot order book shows a large number of pending buy orders between $81,000 and $81,250, which have been accumulating since October 3, constituting the largest cluster of buy orders below the current Bitcoin price. Previously, Bitcoin failed to break through the selling pressure zone between $86,500 and $86,750, causing it to lose the buy-side support formed around $85,000, thereby making the $81,000 to $81,250 area an important defensive zone. However, the concentration of buy orders does not equate to price stability; these orders could be withdrawn at any time, and persistent selling pressure may exceed existing demand. The more critical variable lies in the liquidation distribution across the derivatives market. Glassnode's analysis shows a large number of possible liquidation price points between $81,700 and $83,300, and if prices rebound to this range, it could trigger a new round of long-position blowups. Additionally, another sizable liquidation risk zone exists near $75,000, meaning that if the current support fails, prices could face a deeper decline. The current market structure exhibits the typical characteristics of 'heavy selling pressure above, thin support below,' and whether the buy orders at $81,000 to $81,250 can effectively absorb the selling pressure will be the key to determining short-term direction. If buying power is insufficient to offset selling pressure, prices could quickly break through this range, triggering a liquidation chain reaction in the $81,700 to $83,300 zone and spreading toward the deeper risk zone at $75,000. This resonance between technical levels and on-chain data reveals the high-risk state of the market in its fragile equilibrium.

Market outlook and key battlegrounds ultimately converge on the focal point of $81,000. Currently, the contest between buying power and selling pressure is at a fever pitch, and any imbalance on either side could lead to a sharp shift in market direction. If Bitcoin's price continues to break below the $81,000 buy-order support zone, the risk of further decline will increase significantly, at which point investors may take note of the more severe liquidation risk points identified by Glassnode, including the deeper liquidation zones between $81,700 and $83,300 and near $75,000. In such a scenario, the market's downside space would be opened up, and panic could further spread to other cryptocurrency assets. Conversely, if buy orders can successfully defend the $81,000 line, the market may see a brief stabilization and rebound, but the selling pressure above and high leverage risks remain. Investors need to closely monitor on-chain fund flows and derivatives liquidation dynamics to judge substantive changes in market sentiment. At this critical juncture, the market's resilience will face a severe test, and the fate of $81,000 will become the dividing line determining the next phase of price movement.