Bitcoin Price Decline and Market Liquidations

The price of Bitcoin is plummeting, falling below its peak and leading to significant market liquidations. Currently, Bitcoin is trading at $105,154 with a slight downward trend, retracing from its recent highs of about $106,000, according to the price chart provided. This decline underscores the volatility and difficulties in the vicinity of significant resistance zones, despite Bitcoin maintaining a longer-term upward trend.

Liquidation Data

The situation is further compounded by the liquidation data. Long positions are suffering the most losses, with $327.81 million liquidated compared to $79.59 million for shorts, totaling over $407 million in positions lost in the last day. Bitcoin contributes $77.99 million, making it the second-largest contributor to total liquidations, lagging behind others by $10,098 million.

Ethereum also experienced significant losses, contributing $55.89 million in liquidated positions. Binance is the most affected exchange, with a total loss of $11.45 million—split between $4.39 million in longs and $7.06 million in shorts. With $5.16 million in liquidations, OKX ranks second, showing an overwhelming 81.94% short bias, suggesting bearish sentiment likely caused many position closures.

Altcoin Activity

Unusual activity in altcoins is further highlighted by real-time liquidity data, with concentrated liquidations in smaller-cap assets like SUI-USDT, DOGE, and UXLINK-USDT. The steep decline in Bitcoin likely caused a domino effect across the market, forcing traders who were overly leveraged to sell their positions rapidly. Technically, buyers are intervening to stop further declines, as Bitcoin is still supported near the rising trendline.

Support Levels and Future Outlook

However, if Bitcoin cannot maintain above crucial support levels like $98,400 and $97,900, more selling pressure and liquidations could follow. Traders should monitor Bitcoin's movement around the psychological $100,000 mark. A sustained decline could lead to increased liquidations across leveraged positions in both Bitcoin and altcoins, but a definitive move above this threshold might restore investor confidence. The market remains tense, with expected continued volatility ahead.

This article was originally published on U.Today