Bitcoin leads $400 million liquidation wave as bulls get squeezed on April 2, 2026

Crypto liquidations surpassed $400 million on Thursday, 02 April, rising to $456.19 million from $271.18 million on Wednesday, 01 April. The figures indicate a sharp increase in forced selling activity across the derivatives market.

Liquidations: longs vs. shorts

Of Thursday’s total liquidations, $287 million were long positions and $169 million were short positions. The report attributes the short-term selling pressure to Bitcoin’s price dropping below $66,000 on Thursday.

Bitcoin funding rate and liquidation concentration

Bitcoin’s funding rate also moved into negative territory on Thursday, though it had climbed to +0.0008% at the time of reporting. CoinGlass data showed BTC recorded the highest liquidations over the last 24 hours, totaling $57.17 million.

Positioning index: bullish shift faded

Crypto analyst Axel Adler Jr cited the Bitcoin Positioning Index, noting that its 30-day moving average reached +3.0 on 17 March. The indicator is used to measure how aggressively market participants are positioned in the derivatives market.

While the +3.0 reading reflected bullish positioning at the time, BTC’s price correction over the past two weeks pushed the positioning index back below zero. Adler Jr said this suggested more aggressive bearish positioning.

Market impact and outlook

The crypto market remains closely tied to Bitcoin trends. A return above zero for the Positioning Index’s 30-day moving average would be a positive development for crypto bulls.

As of the latest data, short positioning remains dominant across the market. Futures liquidations have increasingly been led by long liquidations, while the dominance of short liquidations has been absent since October 2025—an indication, according to the report, of bearish strength returning.

Conditions for a bullish regime change

The report states that a reversal in the positioning index 30SMA above zero, alongside continued dominance of short liquidations, would point to a bullish regime change. However, it adds that this scenario appears unlikely based on the prevailing bearish sentiment described in a prior AMBCrypto report, which suggested Bitcoin could fall below the $65,000 lows and weigh on the broader crypto market.

Summary

Bearish positioning has been widespread across the BTC derivatives market. A shift in the positioning index and changes in liquidation dominance would be key signals for buyers.