Bitcoin Plummets $324M in Long Liquidations Amid Musk-Trump Clash

Bitcoin recently experienced significant volatility, with $324 million in long-position liquidations following a clash between Elon Musk and Donald Trump. This event led to substantial price fluctuations and the liquidation of many funds. The nearest support for the STH Realized Price is at $97.5, affecting both long and short holders. The market's stability in the coming weeks will be crucial as it recovers from this major liquidation event.

On June 6, 2025, a massive liquidation of long positions in Bitcoin occurred, totaling around $324 million. This event highlights the market's pressure due to recent changes in Bitcoin's value. The increase in liquidations indicates that traders are nervous and using excessive leverage, which adds to the market's instability.

According to CryptoQuant’s data, the long liquidation event was triggered by Bitcoin almost reaching $102.8K in price. However, the closest support is near the $97.5 price mark, known as the STH Realized Price. This level is crucial for investors assessing the market's short-term performance. If Bitcoin fails to hold this level, it could lead to more sellers, additional liquidations, and increased market instability.

Large sell-offs often occur when the market is overleveraged during significant price swings. Traders who take on high risks may be forced to sell their holdings, leading to sharp price movements and encouraging more rapid buying or selling. This dynamic can further destabilize the market.

Bitcoin's price action is now focused on key resistance and support points, with limited liquidity up to $111K. There are still a significant number of open short positions above the current price. If Bitcoin touches or falls below the major liquidity area at $111K, it could trigger a significant price drop. Conversely, a strong rally could lead investors to sell their shorts, pushing prices even higher.

The concentration of liquidity in this range is gradually increasing pressure on Bitcoin. If the price manages to overcome this resistance, there is a higher chance of a short squeeze, where traders short the market are forced to close their positions, causing the price to surge. However, if Bitcoin is rejected at this resistance level, it could lead to further market drops, potentially approaching the major support near $97.5K or even lower.

In the coming days, traders will closely monitor the balance between buying and selling to gauge future price movements. If Bitcoin surpasses $111K, it could move upwards, but failing to overcome this level could result in a further price drop, making it difficult to maintain progress.

Market sentiment plays a crucial role in Bitcoin's price action during periods of high volatility. The significant amount of long liquidations underscores the risks of leverage trading, as Bitcoin's volatility can lead to sharp price movements and additional volatility. The direction of Bitcoin's prices will depend on the performance of long and short positions. Investors will watch to see if the price falls below $97.5 STH Realized Price or rises above $111K in Short Liquidity. If the market does not stabilize, more liquidation events could occur, leading to significant price movements.

Overall, Bitcoin's market remains fragile, with liquidations continuing to impact its prices. As Bitcoin approaches important support and resistance zones, traders should exercise extra caution. If Bitcoin crosses key resistance or settles at support levels in the coming weeks, it will provide clearer insights into its future trajectory.