Bitcoin’s (BTC) liquidations have seen a tremendous surge, exceeding $400 million in the past 24 hours.
The sharp rise in liquidations followed Bitcoin’s price decline from $86,000 to a low of $78,711.20, triggering a wave of forced closures.
The market faces uncertainty as traders assess key support levels to determine Bitcoin’s next move.
Bitcoin Liquidations Surge as Price Drops Below 80K
Bitcoin long liquidations have spiked, with over $800 Million wiped out in the last 24 hours.
The recent price reduction has led to the highest long position shut-outs since November 2024.
As Bitcoin fell below $80,000, traders faced increased margin calls, leading to widespread liquidations.
Market pressure increased quickly after the price drop, causing leveraged traders to close their positions.
The market experienced significant volatility, with Bitcoin trading below $80,000, near the $78000 mark at press time.
According to market analysts, these liquidations decreased market leverage as they might have created favorable conditions for a significant price shift.
Per CryptoQuant, the order book decreased due to leverage wipeout events, thus allowing massive price movements with reduced trading volume.
Some analysts believe the current conditions could pave the way for a rebound if Bitcoin holds key support levels.
Analysts who provide this warning believe market instability will intensify if these support levels are broken.
BTC Price Drops Below Key Support Levels
BTC price decline has shaken market confidence, with the cryptocurrency dropping below the critical $85,000 level.
US President Donald Trump’s announcements on tariffs have wiped out any optimism or bullish expectations.
As per Coinglass data, 226,890 traders in total were liquidated. The total liquidations amount to $932.45 million at the time of writing.
The crypto market is currently in a freefall as an onslaught of liquidations ensue.
Ethereum’s price reached an annual low point with liquidations amounting to $217.20M occurring within the last $24-hours.
The market could experience sustained pressure, leading to additional selling activities unless a proper support level is established.
Technical Indicators Signal Bearish Momentum
Technical indicators signal bearish market trends through multiple signals that predict further price volatility will remain negative.
Oversold conditions suggest that seller exhaustion exists because the Relative Strength Index (RSI) currently shows a value of 27.17.
Market bearishness increases according to the MACD indicator, which exhibits negative momentum through a histogram value of -3667.
The downward trend of the ADX indicator shows strength as its value reaches 43.
If selling pressure persists in the coming days, Bitcoin could test lower support levels.
Traders are now monitoring the $75K-$78K range. This could set the stage for Bitcoin to bounce back toward the $90K-$95K range.
