Bitcoin Long Liquidations Surge to Three-Month High

Bitcoin long liquidations over the past 24 hours have reached their highest level in about three months, with over $245 million in Bitcoin long positions being liquidated. According to recent data, this is the highest level of long liquidations since November 2024.

The liquidations come as Bitcoin's price dropped from Monday's highs of $96,500 to below the psychologically important $90,000 support level. Analysts have offered differing opinions on the potential impact of these liquidations. Some, like "MAC_D," argue that such leverage wipeouts can thin the order book, allowing for strong moves with minimal volume. Additionally, "MAC_D" noted that the $89,600 price level was likely to support the asset's price, as it was the average entry price for whales that have held for less than six months.

However, Bitcoin has since breached this support level, trading below $87,000 at one point. "MAC_D" had suggested that a breach of this level could increase the likelihood of a sharp decline. Despite this caution, several chart analysts remain optimistic. For instance, "Titan of Crypto" has asserted that Bitcoin could be gearing up for an explosive move, citing an inverse head and shoulders pattern on the weekly candle chart. Meanwhile, "DonAlt" has described the recent correction as simply a sweep of the weekly range lows, contending that a close above the lows will likely precede a bounce next week.

As Bitcoin's price fluctuates around the $89,200 level, investors and traders are closely monitoring the situation. The mix of sentiments among analysts highlights the uncertainty surrounding the cryptocurrency market, with some predicting a rebound while others warn of potential further declines.