More than $140 million in Bitcoin (BTC) long positions were liquidated within a single hour, according to Coinglass data, as the price hovered around the $90,000 level. This flash wave of Bitcoin liquidations underscores the elevated leverage and high volatility in the derivatives market. The liquidations spiked when BTC failed to hold key intraday levels, causing a cascading effect across major exchanges and accelerating the downside pressure.
Large-scale liquidations often act as a “reset,” flushing out excessive leverage from the system and resetting market positioning. Although the move is painful for short-term leveraged traders, it can reduce speculative froth and create a healthier foundation for stabilization or a potential rebound. The speed and scale of the event suggest that leverage had been crowded on the long side of the market.
Analysts suggest that events like this tend to mark local exhaustion points rather than a structural trend reversal. If liquidation pressure subsides and spot demand remains stable, BTC might attempt to consolidate above key psychological levels. However, volatility is expected to persist as traders reassess their positioning following this leverage purge in the futures market.
Source: https://www.coinglass.com/LiquidationData
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