- Bitcoin’s rising long liquidation dominance signals strong buyer support and hints at an upcoming bullish reversal in futures sentiment.
- Short liquidations during late 2023 rallies highlight a recurring pattern where bear wipeouts drive rapid price appreciation.
- Oscillator trends and reduced liquidation intensity above $100K suggest a stable market poised for bullish momentum if patterns hold.
Bitcoin is currently holding strong within a narrow range of $103,000 to $106,000. Despite this tight trading band, the long liquidation dominance metric has climbed from 0% to over 10% in just a week. This signals a development in the futures market. While long liquidations have increased, Bitcoin’s price remains resilient. Hence, the market shows strong buyer support despite rising pressure on long positions. If this metric jumps another 5–7%, it could flush out remaining bears and spark a major bullish shift.
Liquidation Patterns Support Bullish Futures Outlook
Bitcoin’s journey since January 2023 highlights a consistent relationship between liquidation events and directional price moves. Early 2023 saw long liquidation dominance. These forced sales pulled Bitcoin below $25,000, introducing heavy downward pressure. However, the tide began to shift later that year.
Source: Axel
By late 2023, short liquidations surged. Consequently, Bitcoin rallied sharply, breaking resistance levels above $30,000 and later hitting $45,000. Oscillator indicators confirmed this momentum shift with red spikes, showing bearish wipeouts during price rallies. Additionally, high short liquidation events pushed Bitcoin past psychological barriers rapidly.
Momentum Indicators Reveal Shifting Market Control
Oscillator readings showed green peaks during long liquidation spikes and red dips during short liquidations. These movements aligned with Bitcoin’s price turning points. Moreover, the 30-day moving average filtered out noise, helping analysts spot emerging liquidation trends.
High bull liquidations often preceded local price peaks. These moments, marked with green circles, showed profit-taking zones. Conversely, high bear liquidation periods, marked with red circles, fueled continued price surges. These indicators shaped a picture of market strength and direction.
Current Outlook Points to Stable Price Support
Through April 2025, Bitcoin maintains levels above $100,000. Liquidation intensity has eased, suggesting equilibrium in futures positioning. The oscillator is balanced, indicating reduced market friction. However, rising long liquidation dominance is a critical signal.
Moreover, this metric’s potential reversal could signal a futures market pivot. Should liquidation dominance peak and decline, bulls might regain full control. Therefore, traders are watching this development closely, expecting a trend change if the pattern continues.
