The price of Bitcoin plummets, falling below its peak and causing significant market liquidation. According to the price chart provided, Bitcoin is currently trading at $105,154 with a slight downward trend, pulling back from its recent highs around $106,000. The current decline highlights volatility and difficulties near significant resistance areas, although Bitcoin maintains a long-term uptrend.
The situation is given additional weight by data on liquidation. With longs taking the biggest losses, $327.81 million versus shorts $79.59 million, more than $407 million worth of positions were lost in the last day. With $77.99 million in Bitcoin-related positions, BTC is the second-largest contributor to total liquidations, trailing the others by $10,098 million.
Ethereum, which contributed $55.89 million in liquidated positions, also suffered significant losses. Binance is the hardest-hit exchange with total losses of $11.45 million, split between $4.39 million in long positions and $7.06 million in short positions, according to the liquidation breakdown. OKX comes in second with liquidations of $5.16 million, with an overwhelming short displacement of 81.94%, suggesting that bearish sentiment was likely responsible for the large number of unwinds.
The unusual altcoin activity is further highlighted by real-time liquidity data. Concentrated liquidations occurred in smaller-cap assets such as SUI-USDT, DOGE and UXLINK-USDT. Bitcoin’s sharp decline likely caused a domino effect on the broader market, forcing traders who were overleveraged to quickly sell their positions. From a technical perspective, buyers are stepping in to stop further declines as Bitcoin is still supported near the rising trend line.
But if Bitcoin fails to stay above important support levels such as $98,400 and $97,900, there could be more selling pressure and liquidation. Going forward, traders should keep an eye on Bitcoin’s movement around the psychological $100,000 mark. While a sustained decline could increase the liquidation of leveraged positions in both Bitcoin and altcoins, a clear move above this level could restore investor confidence. The market remains tight and volatility is expected to continue for some time.
