Traders can track the level of clearing concentration. Helps identify points where selling pressure or forced buying pressure may occur. This often results in short-term support or resistance.
What you need to know:
- Bitcoin price falls by just over $100,000 amid forced liquidations and macroeconomic concerns
- More than $2 billion in futures contracts were liquidated, with longs accounting for more than 80% of the losses (approximately $1.6 billion).
- Despite the high volatility, analysts remain optimistic about Bitcoin in the long term.
Bitcoin prices fell to just over $100,000 on Monday night. The stock rebounded slightly to $101,000 after forced liquidations and new economic concerns wiped out billions of dollars of speculative value in the crypto market. At the same time, analysts believe that Bitcoin is currently at risk of correction and needs new factors to support the next rally.
According to data from CoinGlass, more than $2 billion in futures contracts were liquidated in the past 24 hours. Long traders accounted for nearly 80% of the total, or about $1.6 billion.
Liquidation occurs when a trader using leverage closes a trading position. This is because the margin is below the specified level. In the virtual currency futures market, this settlement occurs automatically. When the price moves against the side holding leverage. The system sells the position to the market to prevent excessive losses.
Large liquidations on the long side often indicate market “capitulation” and can be a sign of short-term lows. Many short positions are closed out before a short-term high when momentum reverses;
Traders can also use liquidation level data to identify zones of forced trading. This often becomes support or resistance in the short term.
The liquidation is one of the largest deleveraging events since September. This shows the fragility of the market after several weeks of continuous price fluctuations.
Bitcoin fell 5.5% on the day and has fallen more than 10% in the past week. ETH fell 10% to $3,275. Solana (SOL) and BNB fell 8% and 7%, respectively, while XRP, Dogecoin, and Cardano fell 5-6%.
The total market value of virtual currencies has fallen to approximately $3.5 trillion. This is the lowest level in more than a month.
Gerry O'Shea, head of global market analysis at Hashdex, said in an email to CoinDesk that Bitcoin is currently trading near the $100,000 level. We are in the midst of market conditions where investors are starting to avoid risk. It has far-reaching implications for digital assets, stocks, and commodities.
He added that recent speculation that the FOMC may not cut rates further this year, as well as concerns about access to tax credit and high stock prices, are all factors putting pressure on the market. Furthermore, as part of the asset growth cycle, we expect to see some selling from long-term Bitcoin holders.
In terms of liquidations, the Bybit platform had the highest closed position value at $628 million, followed by Hyperliquid at $533 million and Binance at $421 million. The single largest close was an $11 million BTC-USDT long on HTX.
Despite the market volatility, analysts still believe Bitcoin's long-term prospects are positive. O'Shea added that the $100,000 level may have psychological significance. However, we do not believe that today's price trend is a sign of weakness in the long-term investment case.
Meanwhile, the Fed continues to postpone rate cuts. Traders believe the next few days will be a key test to see if Bitcoin's rally turns into a true recovery or if it faces another wave of forced selling.
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