Another wave of declines occurred in the last week of February, increasing expectations among short-term traders that altcoin prices could fall further. But this outlook comes with increasing risks. When price approaches a strong demand zone, an unexpected rebound can occur.
This week, several altcoins have shown severe imbalances between potential long and short liquidations. Such situations often create an environment where large-scale liquidations take place.
1. Ethereum (ETH)
The 7-day liquidation map for Ethereum (ETH) shows that many traders are allocating capital and leverage to short positions, betting that the decline will continue through the end of the month.
As a result, cumulative potential liquidations on the short side are currently predominant. If ETH unexpectedly recovers to $2,000 this week, short positions could face up to $2 billion in liquidations.
If ETH rises further to $2,160, short-term liquidations could reach $3.6 billion.
Short-term traders have reasons to justify bearish positions. A recent report from BeInCrypto revealed that Vitalik Buterin reduced his holdings by over 8,800 ETH through February 2026. Meanwhile, Ethereum inflows into Binance have reached their highest level since November 2025.
However, some bullish indicators have also emerged, raising the possibility of an unexpected recovery.
ETH ETF flows have turned positive after four consecutive weeks of outflows. Additionally, CryptoQuant data shows that inflows to ETH accumulation addresses over the past six months have reached the most active period in history.
Given this situation, short sellers may need to reassess their leverage levels to reduce the risk of sudden price reversals.
2. Binance Coin (BNB)
Similar to ETH, Binance Coin (BNB) is also facing persistent selling pressure. Six consecutive weeks of red candlesticks with no clear signs of recovery encouraged traders to maintain dominant short positions.
However, this position increases the risk of liquidation if BNB rebounds.
If BNB rises to $640 this week, the potential short-term liquidation amount could reach $35 million. If it rises further to $680, short-term liquidations could exceed $60 million.
Why should short traders remain vigilant?
First, BNB is approaching the long-term support trendline established in 2024. Selling short near strong support levels often carries increased risk.
Second, data from Onchain Mind, a cryptocurrency analysis account, shows that BNB is currently trading around 37% below the realized price equivalent of short-term holders. Historically, this level has signaled significant undervaluation and has often preceded significant repricing moves.
“BNB is currently trading approximately 37% below its realized price equivalent for short-term holders, a level that historically suggests significant undervaluation. BNB has a history of significant reprices out of this zone,” Onchain Mind reported.
Short sellers who are overly confident in BNB’s downtrend could face significant losses if momentum changes.
3. Bitcoin Cash (BCH)
Bitcoin Cash stands out as one of the few altcoins that is not behaving as if it is in a broader crypto bear market.
Nevertheless, short-term traders have become increasingly bearish on BCH in the last week of February. Their positioning pushed potential short liquidations well above long-side liquidations.
Data from Bitinfocharts shows that whales have been actively accumulating BCH in recent months. One whale address accumulated 400,000 BCH within two months, becoming the third largest holder on the network.
Additionally, a recent report by BeInCrypto states that the average transaction value on the BCH network has surged to more than $2 million, nearly 100 times more than last year.
Under these circumstances, heavily leveraged short positions could face liquidation risk if BCH rebounds. A move towards $630 this week could trigger short-term liquidations of up to $45 million.
In general, extremely negative market sentiment often creates ideal conditions for a short squeeze.
“Crypto market sentiment is so bad right now that I’m actually quite optimistic,” said Gemini co-founder Tyler Winklevoss.
Even in such an environment, short sellers may still make a profit. But without a disciplined profit-making strategy and strict risk management, profits can quickly evaporate and turn into losses.
