Bitcoin (BTC) Price Plummets Below Its Peak, Leading to Significant Market Liquidations

The present decline underscores the volatility and difficulties in the vicinity of significant resistance zones, even though Bitcoin maintains a longer-term upward trend.

Bitcoin’s price is experiencing a slight decline, retracing from recent highs and leading to substantial market liquidations.

Currently, BTC is trading at $105,154, according to the price chart provided, and the recent decline is underscoring the volatility and challenges in the vicinity of key resistance zones, despite Bitcoin maintaining a longer-term bullish trend.

The situation is further highlighted by the liquidation data. Over $407 million in positions have been liquidated in the last 24 hours, with longs suffering the most losses at $327.81 million versus $79.59 million for shorts.

Out of the total liquidations, BTC is the second-largest contributor with $77.99 million in positions related to Bitcoin, trailing others by $10,098 million.

Ethereum also experienced significant losses, contributing $55.89 million to the total liquidated positions. Among the exchanges, Binance is the most affected with a total loss of $11.45 million, which is further divided between $4.39 million in longs and $7.06 million in shorts, according to the distribution of liquidations.

Coming in second is OKX with $5.16 million in liquidations, where an overwhelming short bias of 81.94% suggests that bearish sentiment likely triggered a bulk of the position closures.

Real-time liquidity data is further highlighting unusual activity in altcoins. Concentrated liquidations occurred in smaller-cap assets like SUI-USDT, DOGE and UXLINK-USDT. The steep decline in Bitcoin likely had a domino effect on the broader market, leading traders who were overleveraged to quickly sell their positions.

Technically speaking, buyers are stepping in to prevent further declines as Bitcoin still has support nearby at the rising trendline.

However, if BTC fails to stay above key support levels like $98,400 and $97,900, there could be more selling pressure and liquidations.

Moving forward, traders will be keeping a close eye on Bitcoin’s movement around the psychological $100,000 price point. A sustained decline could amplify liquidations across both Bitcoin and altcoins in the event of a market sell-off, while a clear move above this level could restore investor confidence. The market is still showing signs of tension, and volatility is likely to continue for the time being.