Bitcoin Liquidity Purge: Six Months of Long Positions Wiped Out in Latest Price Plunge

Bitcoin just executed the market's most brutal liquidation event in half a year.

The Great Flush

Long positions built over six months evaporated in hours as BTC's price action turned predatory. The cascade triggered margin calls across exchanges, wiping out leveraged bets that had accumulated since spring.

Market Mechanics Exposed

Liquidity pools drained faster than traders could react. The move demonstrates how quickly crypto markets can reverse sentiment—turning yesterday's bulls into today's bag-holders. Another reminder that in digital assets, your stop-loss is someone else's profit signal.

The cleanup leaves charts reset and positions rebalanced. Perfect conditions for the next leg up—once the traditional finance crowd finishes recalculating their risk models.

BTC liquidations continue to drive price action

This time around, BTC had over $576M in long liquidations for the past 24 hours. The liquidation level itself was relatively normal, but the move to liquidate older positions suggested traders were ready to attack more available liquidity. 

As Cryptopolitan reported, the latest dip wiped out the gains since the fall of 2024, leaving BTC with a net annual loss. In the past two months, BTC volatility also remained high, creating the perfect conditions for aggressive liquidations. 

Based on available activity and signs from the options market, BTC may continue the slide as low as $85,000. 

The leading coin is now 0.9% down on a yearly basis, now lagging behind stocks and precious metals. BTC dominance is also down to 56.6%, while traders attempt to extract gains from rapid meme pumps, altcoin rallies, or DeFi protocols. 

Short traders return to $93,000 range

Following the price slide, BTC bounced to over $90,700, almost immediately after liquidating the available long positions. 

Short interest is now rebuilding, with the biggest liquidity set up at the $93,000 level. The recent recovery also started causing short liquidations for some of the positions at a lower price range. 

The new rounds of Leveraged positions are putting BTC in a range between $85,000 and $95,000, abandoning the previous $105,000-$110,000 level. The rebuild short liquidity goes above $97,000, but is currently insufficient to attract a relief rally above $100,000.

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