Bitcoin's $100,000 Approach Triggers $298M Liquidations

In recent weeks, the cryptocurrency market has experienced a significant shakeout, with leveraged traders facing substantial losses as Bitcoin approached the $100,000 mark. The total liquidations over the previous day amounted to over $298 million, with Bitcoin leading the wipeout with losses of $114.46 million, followed by Ethereum with $65 million. The majority of the losses, $215 million, were from short positions, indicating a traditional short squeeze setup.

Bitcoin's price is currently trading just under $100,000, suggesting that its breakout rally remains robust. The asset is significantly above all three major moving averages (the 50, 100, and 200 EMA), and the most recent breakout candle validates the current uptrend, confirming a strong bullish structure on the daily chart. However, the Relative Strength Index (RSI), which is hovering around 70, may cause short-term volatility, although it does not yet indicate exhaustion.

The dominance of Bitcoin has surpassed the 60% mark, suggesting that more money is being invested in BTC than in altcoins. This type of dominance growth during a price spike usually strengthens Bitcoin’s hold on the larger market narrative, indicating that the market strength of Bitcoin is currently overwhelming. The ramifications are clear: Bitcoin is the market’s top predator.

However, at $100,000, the price action is approaching a crucial psychological and technical resistance zone. The next realistic range is between $105,000 and $110,000 if volume confirmation is obtained. Otherwise, if the long/short imbalance remains very high, a rejection might cause a quick decline back toward $92,000-$94,000. The following sessions will reveal whether Bitcoin actually establishes a new price paradigm or pauses before a correction, given the spike in volatility and the clearing of the field by liquidations.