Bitcoin Reverses Towards $121,000, Unleashing Millions of Long Liquidations

By Hannah Perez

Bitcoin retreated below $122,000 amid reheating after the rally. Just a few hours ago, BTC broke a new all-time high of USD $126,000. The bulls felt the pain of the decline.

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• Bitcoin retreated below $122,000 amid reheating after the rally.
• Less than 24 hours ago, BTC broke a new all-time high of USD $126,000.
• The bulls felt the pain of the change in trend, with million-dollar long liquidations.
• More than USD $636 million have been liquidated in the crypto market, most of them long positions.

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Bitcoin (BTC) experienced an abrupt drop below USD $122,000 on Tuesday, marking a significant setback after Monday’s impressive gains, when it reached a new all-time high of USD $126,000.

The data of CoinGecko show that BTC hit a local low of $121,186 midday Tuesday (ET), amid a broad market decline that was reflected in other major cryptocurrencies and triggered a wave of selloffs.

Ethereum (ETH), the second largest cryptocurrency by market capitalization, lost about 4% of its value, falling below USD $4,500. Other prominent tokens like XRP, Solarium (SUN) and Dogecoin (DOGE) registered falls of more than 4.5%, while AVAX of Avalanche was one of the most affected, with a decrease of 6.6% in the last 24 hours.

The sudden fall —a sudden trend change on the charts— unleashed a wave of sell-offs in the cryptocurrency derivatives market, hitting bullish traders hard.

According to data from Coinglassliquidations of long positions (bullish bets) reached USD $430.83 million in the last 24 hours, with Bitcoin leading the losses by registering USD $111 million in liquidations of long positions. In total, 182,638 traders were liquidated, with a combined volume of USD $636.61 million between long and short positions.

The most significant individual liquidation occurred on the platform OKXin the BTC-USDT pair, with a value of USD $8.74 million, which underlines the intensity of the selling pressure in the market.

Immediate volatility, what’s next for Bitcoin?

According to a report by CoinDeskthe fall of Bitcoin towards USD $121,000 occurs in a context of market overheating after the recent rally bullish. Analysts suggest that investor profit-taking, combined with a natural correction following a rapid rise, may have contributed to the pullback.

Additionally, the high volatility inherent in the crypto market amplified liquidations on leveraged trading platforms.

Despite the decline, some experts see this correction as an opportunity for the market to stabilize before a new bullish momentum. The partial recovery of Bitcoin The reversal suggests that buyers are attempting to defend $122,000 as a key level. However, traders should remain vigilant as volatility remains high and the market could face new pressures in the immediate term.

The technical outlook indicates that BTC support levels near USD $120,000 will be crucial in determining whether Bitcoin can maintain its long-term uptrend or face a deeper correction. Meanwhile, market participants will be watching macroeconomic factors and regulatory developments that could influence future price direction.

At the time of writing, Bitcoin It is trading around USD $121,800, reflecting a loss of 2.8% on the day, although it shows signs of recovery from the daily lows. Since its all-time peak on Monday, the price of BTC has fallen 3.5%.

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Article written with the help of AI, edited by DailyBitcoin

Image from Unsplash

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