3 altcoins face significant liquidation risks in the last week of February

The last week of February saw a new market decline, reinforcing short-term traders’ expectations that altcoin prices could continue to plummet. However, this outlook comes with increasing risks. As prices approach strong support zones, the possibility of a sudden rebound cannot be ruled out.

Currently, many altcoins are showing a serious imbalance between buy and sell liquidation potential, creating favorable conditions for large-scale liquidations in the market.

Ethereum (ETH)

The 7-day liquidation map of Ethereum (ETH) shows a large number of traders concentrating capital and leverage into short positions, expecting ETH to continue declining until the end of the month.

As a result, the total potential liquidation value of short positions currently outweighs. If ETH unexpectedly rebounds to $2,000 this week, short positions could suffer losses of up to $2 billion. If the price continues to rise to $2,160, the liquidation amount could exceed $3.6 billion.

Short-term traders have reasons to maintain a bearish outlook. A recent report from Coinphoton revealed that Vitalik Buterin sold over 8,800 ETH throughout February 2026. At the same time, ETH transferred to Binance has reached its highest level since November 2025.

Ethereum Liquidation Map | Source: Coinglass However, some positive signals are also emerging, increasing the likelihood of a sudden recovery. Funds from Ethereum ETF flows have turned positive after four consecutive weeks of outflows. Additionally, data from CryptoQuant indicates that ETH transferred into accumulation addresses over the past six months has reached its highest activity level in history.

In light of these movements, traders with short positions may need to reconsider their leverage strategies to minimize risks from sudden price swings.

Binance Coin (BNB)

Like ETH, Binance Coin (BNB) is also under prolonged selling pressure. Six consecutive weeks of red candles without clear signs of recovery have led traders to continue maintaining dominant short positions.

However, this increases the risk of liquidation if BNB suddenly rebounds. If BNB rises to $640 this week, potential short liquidations could reach $35 million. If the price continues to $680, total liquidation value could surpass $60 million.

BNB Liquidation Map | Source: Coinglass Why should short traders be cautious?

First, BNB is approaching a long-term support trendline established since 2024. Short positions near such strong support zones often carry high risk.

Second, according to data from On-Chain Mind, a crypto analytics account, BNB is currently trading about 37% below the average realized value of short-term investors. Historically, this level is often seen as a sign of significant undervaluation and usually leads to strong price recoveries.

Short-term holder BNB withdrawal volume | Source: On-Chain Mind “Currently, BNB is trading about 37% below the average realized value of short-term investors, a level that historically signals significant undervaluation and often results in strong price rallies,” On-Chain Mind states.

Traders who are overly confident in BNB’s downward trend may face substantial losses if the market suddenly reverses.

Bitcoin Cash (BCH)

While many altcoins are heavily impacted by the bear market, Bitcoin Cash (BCH) stands out as not showing similar signs of decline.

However, in the last week of February, short-term traders have become increasingly pessimistic about BCH, leading to a sharp increase in short positions. This has caused the total potential liquidation of short orders to far exceed long orders.

BCH Liquidation Map | Source: Coinglass Data from Bitinfocharts shows that whales have been actively accumulating BCH in recent months. One whale address bought 400,000 BCH in just two months, becoming the third-largest holder on the network.

Additionally, a report from Coinphoton states that the average transaction value on the BCH network has surged to over $2 million, nearly 100 times higher than last year.

In this context, highly leveraged short positions risk being liquidated if BCH recovers. If BCH rises to $630 this week, short liquidations could reach $45 million.

Overall, negative market sentiment often creates ideal conditions for “short squeezes.”

“The current sentiment in the crypto market is so bad that I actually feel quite optimistic,” said Tyler Winklevoss, co-founder of Gemini.

In this environment, while short traders may still profit, without proper take-profit strategies and strict risk management, they could quickly lose gains and suffer heavy losses.

Mr. Giáo