The cryptocurrency market experienced massive liquidations this Tuesday after the price of Bitcoin (BTC) fell to $104,130, reversing a previous surge to $111,000. Selling activity intensified during the European session, leading to the total liquidation of $1.36 billion in leveraged positions. Of this figure, over $1.21 billion corresponded to long positions, with Bitcoin ($377 million) and Ether ($316.6 million) being the most affected assets.
Market Impact and Open Interest Contraction
The impact of these forced liquidations was reflected in a notable contraction of leverage. Market data reveals a 4% drop in the Open Interest (OI) of Bitcoin futures in the last 24 hours. This decrease in OI suggests reduced participation in the derivatives market and a potential weakening of bullish sentiment, erasing the weekend’s optimism. The severity of the movement was evident with a single long liquidation of $47.87 million on the HTX platform.
Trader Focus Shifts to Key Support Levels
Following the abrupt drop, traders are now closely monitoring the psychological level of $100,000 as Bitcoin’s “last line of defense.” Popular analyst Jelle commented on X that “bears have finally forced their breakdown.” According to Jelle, BTC needs to reclaim the $105,000-$107,000 zone to avoid a deeper correction that would test this key support.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.