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Bitcoin Late Longs Washed Out as $100K Support Becomes Key for BTC Price - news.adtechsolutions Bitcoin Late Longs Washed Out as $100K Support Becomes Key for BTC Price - news.adtechsolutions

Bitcoin Late Longs Washed Out as $100K Support Becomes Key for BTC Price


Main takeaways:

  • The price of Bitcoin is down 17% from its all-time high on Tuesday, falling below $104,000.

  • Crypto liquidations were $1.3 billion in losses in the last 24 hours.

  • Traders say Bitcoin needs to quickly recover $105,000 to avoid a deeper correction towards $100,000.

Bitcoin (BTC) bears extended the selling activity in the European Trading session on Tuesday as the drop to $104,000 resulting in a large liquidation of leveraged positions in the crypto market.

BTC/USD Daily Chart. Source: Cointelegraph/TradingView

Bitcoin Clears Liquidity Falling to $104,000

BTC price fell to $104,130 on Tuesday, reversing Sunday peaked at $111,000 as derivatives traders have adopted a risk-taking stance.

This extended the deviation from October 6 all-time high of $126,000 to 17% and was accompanied by massive liquidations in the derivatives market.

Related: Retail investors ‘withdraw’ at $98.5K: 5 things to know in Bitcoin this week

More than $1.21 billion in long positions were liquidated, with Bitcoin accounting for $377 million of that total. ether (ETH) followed with $316.6 million in long-term settlements.

Across the board, a total of $1.36 billion was removed from the market in both short and long positions, as shown in the figure below.

Crypto liquidations (screenshot). Source: CoinGlass

The single largest liquidation occurred on HTX, where a $47.87 million BTC-USDT long position was closed.

Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts can precede local tops as momentum flips.

Additional data from CoinGlass showed a 4% drop in Bitcoin futures open interest (OI) in the last 24 hours on all exchanges. The decline was more pronounced on the Chicago Mercantile Exchange, which Bitcoin OI fell by 9% in the last 24 hours.

Although future longs (buyers) and shorts (sellers) are still matched, the decrease in OI suggests reduced leverage and market participation, potentially signaling weaker bullish sentiment.

For example, a 10% decrease in OI between September 19 and September 28 was accompanied by an 8% drop in the BTC price.

$100,000 is now Bitcoin’s last line of defense

BTC broke lows below $105,000leaving questions among traders about where Bitcoin is likely to find support.

“After a bunch of attempts, the bears finally forced their Bitcoin breakout,” he said famous trader Jelle in a post on Tuesday on X.

According to Jelle, Bitcoin needed to recover the $105,000-$107,000 zone to avoid a deeper correction towards $100,000.

“The next support zone is $100K.”

BTC/USD Daily Chart. Source: Jelle

Bitcoin trader AlphaBTC stated that a close daily candlestick below yesterday’s low around $105,300 could trigger a new downward leg below the psychological $100,000 level.

As Cointelegraph reportedbulls are expected to defend the $100,000 level aggressively, as a break below may plunge Bitcoin into a new downward trend.

This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers should do their own research when making a decision.