Bitcoin first flash crashed 4.8% to $56.5k tonight, then rebounded above $60k, with $560 million liquidated in 1 hour.

But what’s more worth watching than the price is the divergent signals from on-chain and derivatives markets.
On one hand, the Ahr999 indicator fell below 0.3, which historically only occurred during extreme moments such as the 2018 bear market bottom, the March 2020 flash crash, and the 2022 FTX collapse. Quantitative fund Hyperion Decimus also stated that four on-chain indicators triggered simultaneously, suggesting Bitcoin is approaching a major turning point.
On the other hand, a whale went long 400 BTC on Hyperliquid with 20x leverage, another whale's long positions in BTC and XRP were liquidated for $8.42 million, and a proxy's 5x long position has an unrealized loss of $21.12 million. The derivatives market is crowded with bearish positions, increasing the risk of a short squeeze, but the funding rate remains in the bearish range.
The sudden drop in US stocks with no warning was the trigger—the Nasdaq fell 1,000 points in 27 minutes, and Apple dropped nearly 6% due to AI chip costs. High-leverage ETFs and crypto liquidations amplified volatility. PCE inflation at 4.1% keeps macro pressure ongoing.
On-chain signals point to a bottoming zone, but leverage structures have not yet been cleared. There is a $530 million demand zone near $58k, but if US stocks continue to fall, a chain of liquidations could push prices lower. The bottom is a process, not a point.
$hype #btc #xrp #etf #on-chain data