Market analysts are watching a possible Bitcoin breakout as metals and digital assets move in tandem following a sharp reset in derivatives positioning.
Bitcoin rebounds as derivatives liquidations flush out shorts
Bitcoin (BTC) climbed back to $89,000 from an intra-day low of $87,400, with a late-session squeeze on Sunday night driving the move. According to CoinGlass, around $28 million in BTC positions were liquidated, with roughly $25 million in shorts and only $3 million in longs washed out.
The single largest BTC liquidation came from a $3.86 million BTC/USDT position on Binance, reinforcing that short sellers, not long capitulators, fueled the rebound. However, on Stocktwits, retail sentiment around Bitcoin stayed in a ‘bearish’ zone, with chatter described as ‘low’ over the past day.
Total crypto market liquidations hit $160.35 million, underscoring how a relatively modest leverage flush can still move prices quickly. Moreover, some traders now expect a new high for Bitcoin in 2026, tying that outlook to broader macro trends and falling positioning risk.
Silver and gold rallies reinforce long consolidation thesis
Analysts argue that the recent positioning reset is more important than Bitcoin’s short-term breakout. On X, TechDev_52 suggested BTC could be nearing the end of a long consolidation phase, setting up for a stronger directional move that may follow gold and silver’s advance.
On Friday, spot gold reached $4,540 an ounce, while silver printed an intra-day high above $83 an ounce on Sunday night, its first such level since 1979, according to TradingView. Moreover, on Stocktwits, iShares Silver Trust (SLV) became the top trending ticker on Sunday night, with retail sentiment tagged as ‘extremely bullish’ and chatter rated ‘extremely high’.
Echoing this enthusiasm, key opinion leader CryptoRUs noted on X that silver’s recent trading resembles its last major breakout pattern. Prices went sideways for a prolonged period until sellers exhausted and momentum rotated higher. That said, analysts caution that historical analogies can fail when liquidity conditions or macro factors change.
Popular crypto commentator PlanB added that Bitcoin’s current divergence from its historical correlations with equities and gold has, in earlier cycles, preceded powerful upside bursts. However, PlanB also warned that such signals increase uncertainty rather than offering guarantees, as structural shifts in markets can delay expected outcomes.
Bitcoin breakout narratives build as sentiment lags price
Against this backdrop, some traders are framing the recent move as a bitcoin breakout scenario developing in slow motion. Positioning is lighter after the weekend flush, metals are at multi-decade highs, and sentiment remains cautious. However, the divergence between improving price action and still-wary retail positioning on Stocktwits suggests that many participants have yet to fully re-engage.
On Stocktwits, analysts and retail traders continue to debate whether BTC’s structural consolidation is closer to silver’s historic breakout or just another mid-cycle pause. Moreover, the uneven reaction across altcoins hints that capital is rotating selectively rather than chasing broad risk.
Ethereum and major altcoins: price, liquidations and sentiment
Ethereum (ETH) traded near $3,000, up about 1.8% on the day. ETH led liquidation flows, with roughly $28.6 million in positions wiped out, including $23.1 million in shorts and $5.5 million in longs. This pattern supports the view that traders leaned into resistance and were forced out as prices stabilized.
On Stocktwits, retail sentiment toward Ethereum remained in the ‘bearish’ zone. However, chatter around ETH declined from ‘normal’ to ‘low’ levels over the past day, signaling fading retail engagement even as prices firmed.
Solana (SOL) outperformed most altcoins, rising about 3.6% to trade near $129. As leverage reset, Solana saw more than $10.3 million in liquidations, predominantly short-driven and aligned with momentum-based buying. On Stocktwits, SOL sentiment stayed ‘bearish’; however, chatter increased from ‘low’ to ‘normal’, hinting at a slight pickup in trader attention.
Ripple’s native token XRP traded close to $1.89, gaining around 1% over 24 hours with liquidations of nearly $1.4 million. Retail sentiment on Stocktwits remained in the ‘extremely bearish’ zone, and chatter was described as ‘low’. Moreover, this combination of weak sentiment and modest price appreciation suggests a cautious stance among retail traders.
Meme coins, BNB and Cardano show selective risk-taking
Dogecoin (DOGE) advanced 1.9% to $0.126, holding its role as a bellwether in the meme-token segment. Around $1.36 million in DOGE positions were liquidated, mostly from short sellers, indicating that traders betting against the meme coin were squeezed as prices ticked higher.
On Stocktwits, Dogecoin sentiment shifted from ‘neutral’ to ‘bullish’ over the past day, even as chatter levels remained ‘low’. However, the modest scale of liquidations and limited discussion imply that speculation in meme assets is still contained versus previous market peaks.
Binance Coin (BNB) added roughly 2.8%, trading around $865. Liquidation activity in BNB stayed below $726,000, signaling that gains were primarily spot-driven rather than leverage-fueled. On Stocktwits, BNB sentiment held in the ‘neutral’ zone with ‘normal’ chatter volume, reinforcing the picture of measured risk exposure.
Cardano (ADA) rose about 1.6% to $0.376, with total liquidations below $1 million. This points to gradual risk-taking instead of an aggressive breakout attempt. Moreover, ADA’s retail sentiment on Stocktwits stayed ‘bullish’ with ‘normal’ chatter, reflecting steady but not euphoric participation.
TRON and broader sentiment signal low speculative leverage
TRON (TRX) traded higher near $0.286 and showed minimal liquidation activity. Only about $2,361 in short positions and $11,600 in longs were cleared, highlighting extremely low speculative leverage in the token.
On Stocktwits, TRX sentiment remained ‘extremely bearish’, with chatter levels classified as ‘low’. However, this combination of negative mood and low leverage can sometimes precede sharp, surprise moves when catalysts emerge and crowded positioning is absent.
Outlook: metals highs, lighter leverage and 2026 expectations on Bitcoin breakout
Across the crypto complex, leverage has reset without triggering a broad collapse in spot prices. Bitcoin is hovering near $89,000, silver and gold are at or near multi-decade highs, and many altcoins are grinding higher on moderate liquidations.
Analysts now frame the landscape as a late-stage consolidation where structural factors, rather than intraday noise, will determine the next major leg. Moreover, with total liquidations at $160.35 million and expectations building for a potential new Bitcoin high in 2026, traders are watching whether sentiment catches up to price before the next decisive move.
Source: https://en.cryptonomist.ch/2025/12/29/bitcoin-breakout-markets-reset/
