Bitcoin Falls Below $100,000 as $700 Million in Liquidations Rock the Market

Bitcoin has dropped below the $100,000 mark, with over $713 million in leveraged crypto positions being liquidated in the past 24 hours. This pullback follows a week-long decline that erased close to 9% from the asset’s value, leaving traders on edge after one of the sharpest corrections since mid-summer.

Data from Coinglass indicates that Bitcoin alone accounted for nearly $295 million of the total liquidations. Long traders were significantly impacted, losing over $240 million as the market reversed abruptly. Another $54 million in short positions were wiped out during brief intraday recoveries.

Liquidity Dries Up Amid Broader Market Uncertainty

According to analyst Michaël van de Poppe, the ongoing U.S. government shutdown is contributing to temporary illiquidity across risk markets, which in turn amplifies Bitcoin's volatility. He noted that macro data, such as the latest PMI uptick, remains positive for risk assets, but cautioned that the crypto market "still needs time to stabilize." Van de Poppe anticipates Bitcoin will test resistance near $106,000 before confirming any sustained recovery.

On-chain data from CryptoQuant, shared by analyst Ali Martinez, presents a slightly more optimistic outlook. Martinez highlighted that Bitcoin's realized losses recently reached -11%, a level that has historically preceded market rebounds. He stated, "In the past two years, BTC has always recovered once realized losses went below -12%," suggesting that the market could be approaching another turning point.

Technical Setup Remains Bearish for Now

Market indicators on TradingView continue to signal caution. The daily summary indicates a "Sell" signal, with most moving averages and oscillators aligning bearishly. The Relative Strength Index (RSI) is hovering near 32, suggesting the asset is approaching oversold territory, while the Moving Average Convergence Divergence (MACD) remains negative, indicating persistent downward momentum.

Bitcoin's price chart displays a distinct pattern of lower highs and lower lows. The next significant support level is anticipated around $98,000. A breach below this level could lead to further declines toward $94,000, although historical on-chain data suggests potential accumulation zones may be forming below the $100,000 mark.

Wider Crypto Market Feels the Impact

Altcoins have mirrored Bitcoin's downward trend, with Ethereum, Solana, and XRP also experiencing losses. The broader sell-off triggered widespread liquidations as overleveraged traders exited positions across various derivatives exchanges.

Despite the current pressure, analysts suggest that this market flush-out could pave the way for a more sustainable recovery. Historically, significant liquidation events often coincide with market bottoms, particularly when accompanied by extreme bearish sentiment and thin liquidity.

Outlook: Volatility Likely to Continue

While technical indicators continue to warn of downside risks, several analysts believe Bitcoin's correction is part of a larger consolidation phase. As liquidity gradually returns and market sentiment stabilizes, a bounce toward the $106,000–$110,000 zone remains a plausible scenario in the coming weeks.

For the time being, Bitcoin remains below the psychologically significant $100,000 level, serving as a reminder that even in an increasingly institutionalized market, volatility remains the prevailing characteristic.

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