Bitcoin Faces Biggest Liquidation of the Year: Price Falls Below $104,000

Bitcoin Faces Biggest Liquidation of the Year: Price Falls Below $104,000

The cryptocurrency market has seen a sharp decline in recent hours, with Bitcoin losing more than $1.3 billion in liquidations and its price falling below the key $104,000 level. Traders are now targeting the $100,000 level as a last line of defense, with the cryptocurrency having fallen sharply since the start of the week from a high of $126,000 in early October.

The sharp drop came after a series of attempts to hold above $105,000. On Tuesday, Bitcoin reached as low as $104,130, reversing Sunday’s rise to $111,000. The drop triggered a massive liquidation of derivatives positions, especially on exchanges like HTX, where nearly $48 million worth of long positions were closed.

In total, over $1.36 billion in short and long positions were withdrawn from the market in the last day, which is the highest daily liquidation since the beginning of the year. Bitcoin was again the most affected activity, with long positions accounting for a significant part of the losses.

Traders are warning that if Bitcoin does not regain the level around $105,000, there is a risk of further decline towards the psychological level of $100,000. Some experts warn that breaking this level could trigger a new downtrend, while defending this level is now key to maintaining bullish sentiment.

In addition, there was a decrease in open interest (OI) on all major exchanges, with CME, for example, recording a decrease of 9%. This indicates that the market is currently nervous and reducing its leverage, which may further affect the price development.

In conclusion, the current situation is a challenge for the crypto market. Traders are eyeing the $100,000 level as a key turning point, with further developments depending on whether Bitcoin can defend this level or if the correction deepens further.

Stay tuned as current events show that the market is still very volatile and uncertain.

*This is not an investment recommendation.

The Coingarage Team