BTC Price Nosedives from Peak: Massive Liquidations Hit Market
The sell-side activity of Bitcoin bearish continued into Tuesday’s European trading day. Leveraged positions in the cryptocurrency market were heavily liquidated as a result of the decline to $104,000. The price of Bitcoin reversed Sunday’s rise above $111,000 and dropped as low as $104,130 on Tuesday. Since then, traders of derivatives have reduced their exposure to volatile positions by taking a risk-off approach.
This increased the difference to 17% from the all-time high of $126,000 on October 6. Massive liquidations occurred in the derivatives market as well. Bitcoin accounted for $377 million of the more than $1.21 billion in long holdings that were liquidated. Ether followed with lengthy liquidations totaling $316.6 million.
Weak Bullish Momentum: Bitcoin Futures Open Interest Slides
According to recent statistics from CoinGlass, open interest in Bitcoin futures has dropped by 4% on all exchanges in the last day. The 9% decrease in the CME is more pronounced. Diminished market participation and weakened bullish conviction are highlighted by the decline in open interest. This suggests that when uncertainty increases, traders are pulling back.
Bitcoin Price Faces Major Test at $100,000 Support
Bitcoin is currently facing its most crucial support close to the $100,000 psychological threshold, following many unsuccessful recovery attempts over $105,000. A daily closing below $105,300, according to analysts, may quicken the sell-off and possibly lead to a more significant drop. Given that a breakdown could signal the beginning of a new negative wave, bulls are anticipated to vigorously defend the $100K zone.
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