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Liquidation frenzy: a weekly trend in trading

Liquidation Frenzy | Traders Face Downward Pressure

By

Dr. Elena Crawford

Jan 22, 2026, 12:27 AM

Edited By

Yuki Tanaka

Updated

Jan 22, 2026, 04:53 AM

2 minutes to read

An illustration showing traders reacting to market liquidations, with charts and graphs trending downward, expressing concern and frustration.

The crypto market is seeing a sharp rise in liquidations. As traders wrestle with ongoing volatility, frustration is mounting. Comments from forums reveal feelings of despair while some cling to long-term strategies amidst the chaos.

Market Liquidationsβ€”A Weekly Reality

Traders report continuous liquidations since November, leading to discontent and a reevaluation of trading methods. One participant noted, "Still patiently holding since November? Come back in 5-6 years.” This highlights the challenging environment that many crypto enthusiasts are navigating today.

Shifting Strategies

Amid the turmoil, several key perspectives emerge:

  • Frustration with leverage: A sentiment echoed by many who believe that reliance on leverage is detrimental. One comment stated, "The leverage getting liquidated keeps the price down, so your DCA yields more Sats." Others warned, **"The degens who use leverage will run out of money."

  • DCA as a preferred approach: Dollar-cost averaging is gaining traction among traders, with comments suggesting it is the safest route right now.

  • Long-term holding: Some traders express motivation to accumulate rather than panic sell.

Sentiment in the Community

The most echoed thought from these forum comments is a sense of shared hardship,

with phrases like "This sucks" other traders questioning their hope for future price increases. Yet, many view the current situation as a buying opportunity, with one participant stating, "At least the hodlers stack when it’s down and don’t lose any sats in the process."

Key Insights

  • β–³ Difficulty in the current cycle: Traders express ongoing frustration with liquidations.

  • β–½ DCA seen as a viable strategy: Participants emphasize long-term accumulation.

  • β€» Urgent call for better strategies: Users urge to rethink reliance on leverage and recognize potential upsides in investing.

As traders show signs of perseverance amid rising liquidations, the future of the crypto market remains uncertain. With many adopting a more cautious stance towards leverage, we might witness a noteworthy trend shift in trader behavior.

Looking Ahead

As the market's volatility persists, the possibility of regulatory scrutiny increases. If liquidations continue, many might lean towards conservative trading strategies. Time will tell how long this trend lasts, but the community's resilience may lead to potential new tactics that fortify future investments.