BTC continues to fluctuate in a narrow range between 103.k and 106.k USD.
Bitcoin Long Liquidation Dominance Spikes 10% in Seven Days.
Bitcoin Long Liquidation Spike
Bitcoin [BTC] has struggled to maintain its bullish momentum since its local peak of $108.0k a week ago. BTC fell sharply over the past day, hitting a low of $102.0k, triggering a massive liquidation of long positions. The market has seen high volatility, clearly signaling a short-term sell-off.
Statistics from CryptoQuant
According to analyst Axel Adler, the dominance of long liquidations has increased from 0% to 10% in just one week. However, Bitcoin has remained in a narrow range of $103,000 to $106,000, reflecting the cautious sentiment of large investors.
Source: CryptoQuant
It is worth noting that when long positions are liquidated en masse, this usually reflects investors expecting a rally to be forced out of the market. The recent liquidation was particularly strong, with the lowest price recorded at $102.k.
Statistics on BTC liquidation
During this period, the total amount of Bitcoin longs liquidated reached 2.2 thousand BTC, the highest in a week. This shows that investors experienced panic selling, accompanied by forced selling pressure as the price continued to fall.
Source: CryptoQuant
The liquidation of long positions caused Shorts investors to quickly dominate the market, resulting in a negative funding rate, reflecting that the excessive divergence between Short and Long factions was taking place. This pressure fueled the next bearish trend in the short term.
Source: CryptoQuant
What's Next for Bitcoin?
Bitcoin is currently trading around $103,763, suggesting that the downside momentum has slowed, creating higher risk positions for traders. In this context, if the dominance of liquidated longs continues to increase by 5–7%, it will likely drive bears out of the market.
Higher dominance could create a reversal opportunity, sparking a short-term rally, especially if the market moves into a large margin short liquidation, leaving bear traders “caught open.”
In this scenario, a shift in market sentiment could occur, leading to a bullish futures market, triggering short squeezes. Bitcoin price would rebound from the recent correction, targeting $104,577.
Source: CryptoQuant
On the contrary, the possibility of a price drop will remain if the selling pressure increases in the market, pushing the price to the next support level around $102.k. Investors need to pay attention to the reversal signals to make accurate decisions, avoiding being caught in the next dump of cryptocurrencies.
Source: https://tintucbitcoin.com/bitcoin-dat-103k-usd-xu-huong-moi/
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