BTC Bulls Tested 🐂 – Can Bitcoin Recover After Heavy Liquidations?

Bitcoin fell to two-week lows after a violent sell-off on Monday.

Bitcoin's seven-day volatility held around 1.1% amid hefty liquidations.

Bitcoin short-term investors are losing money following the latest drop.

Bitcoin (BTC) hit a two-week low of $111,500 on Tuesday as protracted liquidations sparked panic selling among short-term holders.

Short-term holders lose, keeping Bitcoin rangebound.
Bitcoin hit its lowest level in two weeks on Tuesday after a dramatic sell-off over the last 48 hours and a week of quiet activity.

A Tuesday analysis from K33 Research showed average daily spot trade volumes of $2.3 billion, down 12% from the previous week.

Bitcoin's volatility is modest despite the fall. Thursday's 0.616% dip brought seven-day volatility to 1.1%, its lowest level since August 2023. BTC's 30-day volatility fell to 1.33%, approaching its annual lows, reflecting early August.

On Monday, Bitcoin futures had its fourth-largest long liquidation in 2025, with the crypto industry losing $1.6 billion by leverage. K33 Research analysts said futures leverage remained strong amid massive liquidations, with open interest at 305,000 BTC, down 2,600 BTC during the sell-off.

Large liquidation occurrences indicate momentum and market imbalances. Long liquidations may signify local bottoms, but they usually lead to worse performance, experts said.

According to CryptoQuant, the short-term holder Spent Output Profit Ratio (SOPR) plummeted deeply below 1, suggesting that recent purchases are selling at a loss after Bitcoin's depreciation. At $113,000 per BTC, investors lost $3.39 billion moving 30,000 BTC to exchanges.

Large holdings have also been under pressure, as new whale addresses lost $184.6 million and older whales lost $26.3 million during the decline.

The Altcoin Season Index fell from over 80 to 65 as Bitcoin's dominance surged to 57% and Ethereum's share fell to 12%, signaling a rotation back into the top crypto.

#MarketPullback #AltcoinStrategicReserves #Write2Earn $BTC