Bitcoin News Today: Bitcoin Derivatives Signal Panic as Price Falls 2.1% and $760M Liquidated

Bitcoin Derivatives Data Signals Rising Fear Amid Sharp Price Drop and Liquidations

Bitcoin (BTC) experienced a significant price drop earlier today, briefly falling below $115,000 and hitting an intraday low of $114,116. The decline triggered widespread panic selling across major exchanges, particularly on Binance. Key metrics such as open interest and net taker volume shifted sharply, signaling intense bearish pressure and potential market instability.

The drop pushed BTC open interest on Binance to fall from $14 billion to under $13.5 billion, representing a nearly 4% decline in a single day. According to data from CoinGlass, approximately $760 million in positions were liquidated over the past 24 hours. This scale of liquidations typically occurs when leveraged traders face forced closures due to margin calls, and in this case, about 183,514 traders were affected within just 24 hours.

Alongside the open interest decline, Binance’s net taker volume also turned significantly negative, reaching -$160 million. This metric reflects the difference between buy and sell orders initiated by market takers and has returned to negative territory, indicating aggressive selling pressure. A negative net taker volume is generally interpreted as a bearish signal, suggesting that selling activity has overwhelmed buying interest.

These developments reinforce the idea that many derivatives traders are panic-closing long positions. The convergence of falling open interest and negative net taker volume underscores the growing urgency among traders to offload exposure in light of the sharp BTC drop.

Amr Taha of CryptoQuant noted that while the current indicators are bearish, they could also create conditions for a short-term rebound. As Bitcoin’s selling pressure appears to be nearing exhaustion, and short interest continues to build, a market rebalancing phase could lead to price stabilization or even a short squeeze-driven bounce. However, on-chain data suggests that bearish momentum is likely to persist in the near term.

The increasing proportion of new BTC holders in the market could lead to overheated conditions, while rising exchange reserves may add to the downward pressure. Additionally, long-term holders appear to be selling in large volumes, further signaling potential exhaustion of any recent rally.

Despite the bearish signals, BTC remains on track to potentially reach its year-end target of $180,000, provided it holds the critical support level at $110,000. As of the latest report, Bitcoin is trading at $115,310, down 2.1% over the past 24 hours.

Source: [1] Bitcoin Derivatives Data Binance Net Taker Volume

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