Bitcoin Plunge Triggers Massive $277 Million Long Liquidation Carnage

Bitcoin just sliced through support levels like a hot knife through butter—triggering the biggest long liquidation event of the quarter.

Market Carnage Unpacked

Traders betting on the upside got absolutely wrecked as BTC nosedived—wiping out $277 million in leveraged long positions in a matter of hours. Exchanges flashed margin calls like disco lights at a 1970s party.

Leverage: A Double-Edged Sword

When Bitcoin sneezes, the altcoins catch pneumonia. The cascade didn’t just stop at BTC—altcoins got hammered too, proving once again that over-leverage is the quickest way to turn a portfolio into confetti.

Where’s the Bottom?

Nobody knows—and anyone who says they do is probably trying to sell you an indicator. Classic crypto: euphoria one day, existential dread the next. Just another Tuesday.

Finance pros watching from the sidelines? Probably sipping champagne and muttering 'told you so'—because nothing makes traditional finance happier than crypto volatility proving their point. Again.

Bitcoin’s Dip Sparks Liquidation Wave

BTC has seen consistent declines over the past few days. Today, it has extended its dip by 3% amid a sluggish start to the trading week. 

This downtrend has triggered a significant wave of long liquidations in its futures market, totaling $277 million over the past 24 hours, according to Coinglass data.

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Liquidations occur in a derivatives market when an asset moves against a trader’s position, forcing the position to be closed due to insufficient funds to maintain it. Long liquidations specifically happen when traders betting on a price increase are compelled to sell the asset at a lower price to cover their losses. 

In BTC’s case, the recent price drop has pushed many positions past critical thresholds, triggering this forced selling. 

With on-chain data pointing to climbing bearish strength, more long positions are at risk of being liquidated. For example, per Santiment, BTC’s trading volume has rocketed by 90% in the past day, reaching $45 billion at press time.

When an asset’s price falls while its trading volume balloons this way, it signals that selling pressure is intensifying, and more participants are exiting positions.

For BTC, this raises the risk of further long liquidations and points to increased distribution, as holders may be offloading in anticipation of continued weakness.

BTC Dips Under Ichimoku Cloud, Could Retrace Toward $110,000

BTC’s recent dip has pushed its price below the Ichimoku Cloud, with Leading Spans A and B now forming resistance at $113,797 and $115,518. 

This indicator tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades below this cloud, it reflects the bearish pressure in the market as demand stalls while selling pressure spikes.

If the trend continues, BTC risks falling below $111,961 and potentially retracing to the $110,000 region.

However, if new demand enters the market, its price could regain strength and climb toward $115,892.