Key Takeaways
- •Bitcoin price has fallen 17% from its recent all-time high, dropping below $104,000.
- •Crypto liquidations have reached $1.3 billion in losses over the past 24 hours.
- •Traders indicate that Bitcoin must quickly reclaim $105,000 to prevent a further correction toward $100,000.
Bitcoin Experiences Liquidity Wipeout in Decline to $104,000
Bitcoin (BTC) faced selling pressure during the European trading session on Tuesday, with its price falling to $104,000. This decline resulted in substantial liquidations of leveraged positions across the cryptocurrency market.
The BTC price reached a low of $104,130 on Tuesday, reversing the upward movement seen on Sunday when it spiked to $111,000. This shift occurred as derivatives traders adopted a more cautious, risk-off stance.
This price action extended the deviation from the Oct. 6 all-time high of $126,000 to 17%. The market saw significant liquidations across derivatives platforms concurrently.
More than $1.21 billion in long positions were liquidated, with Bitcoin accounting for $377 million of this total. Ether (ETH) followed closely, with $316.6 million in long liquidations.
Overall, the market experienced the liquidation of $1.36 billion in both short and long positions, as illustrated in the accompanying figure.
The largest single liquidation was observed on HTX, where a $47.87 million BTC-USDT long position was closed out.
Significant clusters of long liquidations can often indicate capitulation and the potential for short-term market bottoms. Conversely, substantial wipeouts of short positions may signal the approach of local tops as market momentum shifts.
Further data from CoinGlass indicated a 4% decrease in Bitcoin's futures open interest (OI) across all exchanges over the preceding 24 hours. The decline was particularly notable on the Chicago Mercantile Exchange, where Bitcoin OI dropped by 9% during the same period.
CME #Bitcoin open interest decreased by -9.39% in the past 24 hours.
— CoinGlass (@coinglass_com) November 4, 2025
What happened?😒https://t.co/b1RbJ1A35Ppic.twitter.com/nYEgcrz4AR
While futures longs and shorts are always balanced, a reduction in open interest suggests decreased leverage and market participation. This can potentially signal a weakening bullish sentiment.
For instance, a 10% decrease in OI between September 19 and September 28 was associated with an 8% drop in BTC price during that period.
$100,000 Represents Bitcoin's Last Line of Defense
Bitcoin's price has fallen below the $105,000 level, raising questions among traders about where the cryptocurrency is likely to find support.
Popular trader Jelle stated in a post on X that bears have finally succeeded in forcing a Bitcoin breakdown after multiple attempts. According to Jelle, Bitcoin needed to reclaim the $105,000-$107,000 range to avert a more significant correction towards $100,000.
The next area of support is $100K.
Bitcoin trader AlphaBTC commented that a daily candlestick closing below yesterday's low, approximately $105,300, could initiate a fresh downward movement below the critical psychological level of $100,000.
📈#Bitcoin LTF game plan 📈
— AlphaBTC (@mark_cullen) November 4, 2025
I would really like $BTC to hold this low now, and confirm a deviation below last Thu low, and at minimum push up into the 112k's.
Will be watching both pink boxes, and if it loses yesterdays low I will be watching for < 100K.#Crypto#BTChttps://t.co/4ZU5Xze5IBpic.twitter.com/aMZhBApnHv
As previously reported, bulls are expected to defend the $100,000 level vigorously. A sustained break below this significant price point could potentially lead Bitcoin into a new downtrend.