Bitcoin saw over $160 million in long liquidations and -$100 million in Taker Volume as speculative leverage was wiped out.
BTC's Stock-to-Flow ratio of 396, along with the Stablecoin ratio, shows that buying power is still passive.
Bitcoin Falls Below $103K, Triggering Liquidation Chain of Over $160 Million on Binance
Bitcoin [BTC] price dropped below $103K, triggering a long liquidation worth over $160 million on Binance. The event came after a multi-day unwinding of highly leveraged positions, reflecting volatile market conditions and a lack of control over large buy and sell orders.
During this time, Binance’s Net Taker Volume suddenly dropped to -$100 million, confirming the selling pressure from strong market orders.
Investor panic forced the market into a sharp correction, pushing long positions under attack and wiping out overbought orders in a flash.
Analysis of liquidation reset and bottoming possibility
In addition to liquidations, sharp price resets often prompt temporary bottoms, especially when accompanied by signals of gradual accumulation of swing trading assets and reduction in leverage.
Source: CryptoQuant
Divergence or Soft Refinement? Assessing the Long-Term View
BTC's macro indicators show a sharp decline in realized capitalization, with the 7-day Realized Cap at $33.48 billion and the 1-day at just $1.11 billion according to data from Santiment.
This decline reflects the loss of real profits and the decline in trading activity of individual and institutional investors, which will create opportunities for the retail model to tighten and reinforce the positive trend in the long term.
Source: Santiment
Short-term investor trends – Still playing a pivotal role?
The activity of short-term investors (STH) has dropped sharply, especially the Realized Cap HODL Waves (1-7 days) index, which has dropped from over 8% to nearly 3.6%. This shows that the selling or panic strategy of flash investors has somewhat ended.
Along with that, the Stock-to-Flow (S2F) index hit a cycle high of 335, indicating that limited supply is extremely evident.
This mix of exhausted selling pressure and limited supply depicts early signs of a possible market recovery in the coming period.
Source: Santiment
Is the reactivation resource still potential?
In terms of liquidity, the Exchange Stablecoin Ratio is currently 5.45, down 1.23% on the day, indicating that investors are increasingly holding more stablecoins than other assets.
This lower index usually predicts a higher buying potential in the short term, as investors are not in a hurry to use their reserve funds to participate in opening new positions.
Liquidity is still on standby, ready to transition to long BTC positions when market sentiment stabilizes.
Source: CryptoQuant
Is the instability still lasting?
BTC price is around $103,569, just off the 0.236 Fibonacci level at $105,245, but still holding above the $102K support through multiple tests.
There is no clear trend change signal from the 9-day and 21-day moving averages. If investors buy more strongly, the possibility of breaking through the 0.382 or 0.5 Fibonacci levels is opening up, towards the 110K - 112K USD zone.
While the structure remains weak, there is room for BTC to recover if accumulation picks up strongly around this area.
Source: TradingView
Is the market past the worst of the downturn, or is there still risk of a deeper decline?
Liquidations of nearly $160 million and negative Volume Taker data indicate that the market has cleared excessive leverage. At the same time, the supply ratio is extremely high and potential buying power is still present, signaling a positive reversal.
In this context, although risk warnings remain, the probability of the market moving into a phase of stabilization or gradual recovery still prevails, as long as investors protect the support zone of 102K – 103K USD.
Source: https://tintucbitcoin.com/bitcoin-sau-ban-thao-160-trieu-usd/
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