📉 Long liquidations are rising — is the market preparing for a reversal?
Against the backdrop of Bitcoin remaining in a narrow range of $103,000 – $106,000, important dynamics are observed in the futures market:
🔹 Over the past week, the dominance of long liquidations has increased from 0% to +10%.
What does this mean and why is it important?
👉 Typically, long position liquidations occur during sharp price declines. But currently, the price remains stable while the volume of liquidated longs is increasing.
This indicates that:
1. The market is “digesting” overheated longs — weak players are exiting, but the price is not falling.
2. Buyers continue to absorb the selling pressure — i.e., there is demand and support, even despite the liquidations.
3. This could be a precursor to a reversal in favor of the bulls.
📈 Analysts note:
If the dominance of long liquidations rises another 5–7%, this could lead to a mass washout of bears from the market — those who continue to bet on a decline.
And as soon as the metric starts to decrease, it will become an important signal: sentiment in the futures market begins to shift towards buyers.
