Bitcoin Falls Below $92K as Sunday Selloff Unleashes Hundreds of Millions in Liquidations

Bitcoin fell below $92,000 on Sunday as a selloff triggered massive liquidations across perpetual futures markets. The decline marked a sharp reversal from recent gains above $97,000 and intensified volatility as key support levels were breached. Market participants are now monitoring whether Bitcoin can stabilize above $95,000 or face further downward pressure according to market analysis.

Trading data from major exchanges showed over $360 million in liquidations within 24 hours, with the largest single loss reaching $34.9 million on HTX. The selloff primarily impacted leveraged long positions that had built up during recent bullish momentum. Funding rates had already signaled overbought conditions before the move.

Open interest in Bitcoin futures fell to $36.7 billion as traders unwound leveraged positions. The Fear & Greed Index dropped to 64, reflecting a shift from "extreme greed" to a more cautious stance. Analysts note this is typical behavior during market corrections.

Why the Move Happened

The price drop was driven by several technical and fundamental factors. Bitcoin failed to maintain key support levels, including the 20-day EMA near $97,200 and the weekly pivot point at $96,450. A surge in exchange inflows from long-term wallets suggested profit-taking activity. Additionally, a stronger U.S. dollar added pressure to risk assets.

Order book data revealed concentrated sell liquidity just above $96,500 during Asian trading hours. This triggered cascading liquidations as short-term traders faced margin calls. The move also reset overbought conditions and excessive leverage across derivatives markets.

How Markets Responded

Altcoins mirrored Bitcoin's decline, with Ethereum, XRP, and Solana falling between 2% and 4%. The broader cryptocurrency market cap dipped approximately 5.2% in 24 hours, compared to Bitcoin's 2.5% decline. This suggests altcoins are typically more volatile during Bitcoin-led corrections.

Market sentiment turned bearish as bearish liquidations outpaced short liquidations. CoinGlass data showed $66.5 million in long liquidations versus $819,600 in short liquidations, signaling a net bearish bias. On-chain metrics indicated a market in need of consolidation.

What Analysts Are Watching

Market watchers are focusing on several indicators. The $95,000 level is now a critical near-term support. If Bitcoin fails to hold there, traders may look for support near $92,000 or the 100-day MA at $91,042 according to institutional analysis.

Institutional demand has been a key driver recently, with $1.07 billion in net inflows into U.S. spot Bitcoin ETFs recorded in a single day. This suggests steady institutional buying despite short-term volatility. On-chain metrics like Bitcoin supply on exchanges and holder wallet activity remain positive.

Regulatory developments also remain in focus. The delayed U.S. CLARITY Act is being viewed as a potential positive for the industry, with some analysts comparing the situation to the protracted negotiations around Europe's MiCA regulations. Market participants are watching for policy clarity that could impact investor sentiment.