- The price of Bitcoin dropped in a matter of hours from $122,500 to $101,500, removing recent gains and testing the significant support zone around $108,000.
- Over 1.65 million traders were liquidated, corresponding to a total loss of $19.29 billion, as Bitcoin and Ethereum drove the liquidation wave.
- The market has been consolidating within the range of $108,000-$120,000, waiting to determine whether a breakout will occur or a further slump of the price.
Bitcoin fell close to 17% within a span of a few hours, from $122,500 to $101,500, and this caused a cascade of liquidations across the board and substantially greater volatility for all of the top cryptocurrencies.
Bitcoin Faces Sharp Reversal After Reaching New All-Time High
The cryptocurrency market experienced extreme sell pressure as the Bitcoin price made a steep pullback following recording a new all-time high at $124,545. The same pullback erased much of the recent gains in a jaw-dropping rally phase and pushed BTC towards a crucial support level of about $108,000. Crypto Patel describes that the market declined from $122,500 to $101,500 within hours, which reveals how unpredictable the market could be.
Technical charts show that Bitcoin lost the short-term resistance level of $119,979, causing cascading sell orders. The daily candle shows a bit of a bounce around $113,000, indicating that buyers are attempting to return. Yet recovery momentum will be questionable unless Bitcoin gets back above the $117,000–$120,000 range.
If price action does not maintain above key support areas, trends will suggest the market will try and test the zone of $100,000–102,000. If the price continues to stay above $119,000, there is a chance we can view the broader bullish trend, which is still intact in the larger time frames.
$19.29 Billion in Liquidations Sweep Across the Market
The sudden decline triggered a record wave of liquidations, totaling $19.29 billion in the past 24 hours. Data shared by Crypto Patel shows that over 1.65 million traders were liquidated, marking one of the largest events in recent history. Long positions accounted for $16.8 billion of the total, signaling an extensive long squeeze as prices fell rapidly.
Bitcoin traders experienced the biggest amount of liquidations, worth about approximately $5.36 billion. Ethereum came thereafter at about $4.42 billion. Solana was at $2.00 billion, and XRP followed with $706 million in liquidations. The biggest single liquidation was for $203.36 million and happened on Hyperliquid on the ETH-USDT pair.
This forced closure event is a manifestation of excessive leverage in the market, as traders had positioned themselves aggressively for continued upside. Once long positions quickly unwound, it caused the downside move to expand temporarily as part of a short-term correction.
Market Awaits Stability as Bitcoin Consolidates Near Support
Since its sharp drop, Bitcoin has been holding between a good support of approximately at $108,000 and a resistance of approximately at $120,000. Price action suggests traders are assessing direction amid lower liquidity in the markets. A breakdown below support would likely extend correction toward the $100,000 area, while a move above resistance would likely signal renewed bullish interest.
While the latest liquidation flush may have been an opportunity to reset some over-leveraged positions and may align with a healthier structure for prospective moves, general market participant sentiment continues to be cautious, while longer-term fundamentals look relatively stable as traders await confirmation of recovery and risk appetite.
The post-liquidation flush is indicative of the volatility of price discovery at elevated levels, and the wider trading community is observing both key zones and how the market holds up post one of the largest liquidation events since 2021.
