Bitcoin Long Liquidations Reach Three-Month High

Bitcoin long liquidations over the past 24 hours have hit their highest level in about three months.

Over $245 million in Bitcoin long positions have been liquidated recently, according to a report from crypto analytics platform CryptoQuant dated February 25. This marks the highest level of long liquidations since November 2024.

The liquidations occurred as Bitcoin fell from highs of $96,500 on February 24 to below the significant $90,000 support level.

In the CryptoQuant report, analyst MAC_D suggested that Bitcoin might rebound for two primary reasons:
1. The liquidation of leverage positions thinned the order book, enabling strong moves with minimal trading volume.
2. The $89,600 price level could support Bitcoin, as it is the average entry price for whales who have held for under six months.

However, Bitcoin has dipped below this support, trading at one point below $87,000. MAC_D cautioned that breaching this level could heighten the chances of a sharp decline.

Despite this warning, many chart analysts maintain an optimistic outlook. For instance, Titan of Crypto suggested Bitcoin may be preparing for a significant move, highlighting an inverse head and shoulders pattern on the weekly candle chart. Meanwhile, DonAlt characterized the recent correction as a sweep of weekly range lows, predicting that a close above these lows could lead to a bounce next week.

Currently, Bitcoin is trading around $89,200 after recovering some of its earlier losses.