Bitcoin Drops 1.44% Below $102,000 Triggering $730M Liquidations

Bitcoin's price has experienced a notable decline, dropping below the $102,000 mark. As of the latest data, Bitcoin is trading at approximately $101,961.74, reflecting a 1.44% decrease over the past 24 hours. This downward movement has triggered significant liquidation in the crypto market, with over $730 million in positions being wiped out. Notably, 73% of these liquidations were long positions, indicating that overleveraged traders are being particularly affected by the price drop.

The recent decline in Bitcoin's price comes after a period of consolidation, during which the cryptocurrency struggled to break above the $105,000 resistance level. Analysts have pointed out that a sustained drop below the $102,000 support level could lead to a retest of the psychological $100,000 mark. This scenario would likely trigger further liquidations and potentially shift market sentiment in favor of sellers.

The current market conditions are influenced by a mix of macroeconomic factors and on-chain data. Institutional flows into spot Bitcoin ETFs have cooled, with recent net outflows signaling short-term profit-taking by larger holders. However, expectations of interest rate cuts by the Federal Reserve later this year and improving U.S.–China trade relations have slightly eased market uncertainty, providing some support for risk assets.

Technical indicators suggest that Bitcoin remains in a neutral zone, with the Relative Strength Index (RSI) around 58. This indicates that there is still upside potential before overbought conditions emerge. Analysts are closely watching the $105,000 resistance level, as a clean break above this point could confirm a short-term bullish continuation, potentially targeting $110,000. Conversely, failure to hold support at $102,000 could tilt momentum back in favor of sellers, with $100,000 acting as a crucial psychological floor.

The near-term direction of Bitcoin will likely depend on whether bulls can summon enough volume to clear current resistance and invalidate the recent pattern of lower highs. Market participants are also keeping an eye on upcoming macroeconomic data releases, such as the US CPI data, which could provide further clarity on the direction of the market.