Bitcoin Bulls Could Obliterate Bears If This Key Trigger Hits
Market tremors ahead as Bitcoin teeters on the edge of a bear-crushing rally. Here's the make-or-break scenario.
When the dam breaks
All it takes is one decisive push past that critical resistance level—then watch the cascade of liquidations flush out the shorts. The domino effect could send BTC screaming past previous highs as overleveraged bears get steamrolled.
The institutional wildcard
Traditional finance dinosaurs keep trying to short innovation with their spreadsheets and risk models. Meanwhile, the crypto natives are stacking sats and waiting for the inevitable.
Blood in the water
Nothing moves markets like panic—and nothing triggers panic like a 20% green candle that vaporizes $500M in bearish bets overnight. The suits will call it irrational exuberance right before FOMOing in at the top.
Long Liquidation Spike Without Price Crash
The dominance of long liquidations has jumped from 0% to +10% over the past seven days, a move that typically shows distress among bullish traders. However, what makes the current development especially noteworthy is the absence of a steep crash in Bitcoin’s price. Instead, in the just concluded week, Bitcoin held mostly within the $103,000 to $106,000 range until a recent drop, despite facing increasing pressure from long-side liquidations.
Axel Adler Jr. explained that this sustained liquidation of long positions without a full-blown price collapse indicates sustained buyer support. According to data from CryptoQuant, BTC’s long liquidations hit 2,200 BTC, the highest in the past week. Usually, a surge in long liquidations suggests that traders who were anticipating a price rally are being pushed out of their positions under pressure.
The CryptoQuant chart below shows how spikes in long liquidation dominance, especially in the 15% to 20% range, have always preceded bullish reversals. According to the analyst, if this metric rises by another 5–7%, it could cause a high-probability scenario where bearish positions are washed out and flip Bitcoin’s price movements in favor of the bulls.
Image From X: @AxelAdlerJr
Large Wallets Accumulate As Retail Exits
Data from Santiment, another on-chain analytics platform, shows an interesting dynamic playing out among bitcoin holders. Over the past ten days, wallets holding over 10 BTC have increased by 231 addresses, which is a 0.15% rise. Meanwhile, smaller retail wallets containing between 0.001 and 10 BTC have dropped by 37,465 in the same timeframe. This trend highlights a divergence in sentiment between large and retail holders.
According to Santiment, the shift where whales and sharks accumulate while retail exits is a bullish combination for Bitcoin. Bitcoin’s market value is hovering just below $104,000 during this accumulation phase, and there could be an eventual upward breakout once retail holders begin to reenter.
Image From X: Santiment
Despite the underlying on-chain strength, Bitcoin’s spot price has taken a short-term hit in the past 48 hours. During this timeframe, Bitcoin’s price has slipped below support levels between $106,000 and $103,000. At the time of writing, Bitcoin is trading at $102,670, down by 2.6% in the past 24 hours.
The decline can be largely attributed to recent U.S. strikes on Iran. The U.S. military strikes on Iranian nuclear facilities (June 21-22) caused immediate risk aversion across markets. Bitcoin fell 3.2% after announcements of the strikes, much like its 6% drop during similar 2020 Iran tensions.
