Bitcoin Prints 512.73% Liquidation Imbalance as Price Revisits $94,000

Following the launch of the highly hyped XRP ETF, Bitcoin has been under intense market pressure pulling its price well below the crucial $100,000 level.

Amidst this declining momentum, Bitcoin experienced a brutal wipeout in its derivatives market, according to him data provided by CoinGlass.

Bitcoin derivatives activity over the last 24-hour period saw a total of over $310 million of positions liquidated with a massive $268.07 million suffered by long traders.

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While traders who bet on the fall of the asset accounted for only $43.75 million during the period, the imbalance between long and short Bitcoin liquidations in the last day is 512.73%.

While this shows heightened optimism among traders who bet heavily on a rebound that never came, it highlights how one-sided the bullish positioning had become just before the drop.

Bitcoin retests $94,000

While Bitcoin was above the crucial level of $100,000 just before the sudden crash on Thursday, the majority of traders had been aggressively long, with high expectations of a new surge above the level of $100,000.

However, Bitcoin extended Thursday’s decline so far and briefly touched the $94,000 level earlier today. Thus, this caused leveraged positions to become targets for forced liquidations, which further fueled the downward pressure in their price.

While the negative trend continued to spread fear among investors, market analysts warned that Bitcoin could be on track to retest the $83,000 support zone if selling pressure persists.

Despite these severe price corrections, institutional investors are enjoying it Strategy they have been resilient and have continued to stack up on the asset in large portions, fueling hopes for a positive reversal soon.