The sharp decline in Bitcoin triggered the largest wave of liquidations in recent months. Over the past day, more than $1.3 billion in traders’ positions was wiped out from the market, and participants’ attention focused on the $100,000 level as the last line of defense for BTC.
The market loses its footing
On Tuesday, the price of Bitcoin fell to $104,000, losing 17% from the all-time high of $126,000 set on October 6. The correction caused a large-scale closing of leveraged positions and forced traders to switch to capital protection mode.
According to CoinGlass, over the past 24 hours, long liquidations amounted to $1.21 billion, of which $377 million were in Bitcoin. In second place is Ethereum, where the liquidation volume reached $316.6 million.
The total liquidation volume in the market amounted to $1.36 billion, including both short and long positions. The largest closure occurred on HTX, where a BTC/USDT long worth $47.9 million was forcibly liquidated.
Pressure is increasing
The drop below $104,000 continued the decline that began after Sunday’s surge to $111,000. Futures traders sharply reduced risk, locking in losses and closing positions.
According to CoinGlass, open interest (OI) in Bitcoin across all exchanges decreased by 4% in a day, and on CME — by 9% at once, indicating a decline in institutional participation.
A decrease in OI usually reflects a drop in leveraged volume and weakening bullish sentiment. Previously, in September, a 10% drop in open interest was accompanied by about an 8% drop in Bitcoin’s price.
$100,000 becomes key support
Analysts warn that current levels are close to a tipping point. According to trader Jelle, the bears have finally ‘pushed’ the market after several failed attempts, and now for Bitcoin to recover, it needs to regain the $105,000–$107,000 zone.
If this does not happen, the next target will be the psychologically important $100,000 level, which market participants call the last barrier before a new downward cycle.
Trader AlphaBTC noted that a daily close below $105,300 could trigger a new wave of sell-offs and send the price below $100,000.
Capitulation or the start of a reversal?
Mass long liquidations often become a signal of capitulation — and a possible local bottom. After such events, the market often shows a short rebound, especially if the liquidation volume reaches extreme levels, as it does now.
However, if $100,000 is broken, the pressure may intensify: this level is seen as the last point where ‘bulls’ are ready to defend positions. Losing this mark will open the way for a deep correction and a potential reversal of the medium-term trend.
At the same time, some analysts expect aggressive defense of the $100,000 level, believing that the current volatility is part of a broad consolidation before the next impulse.
What’s next?
Amid a sharp drop in liquidity and open interest, the market has entered a phase of caution. Investors are waiting for confirmation of a local bottom and possible recovery to $107,000.
If Bitcoin holds the $100,000 zone and the liquidation volume starts to decrease, this could be the first sign of stabilization. Otherwise, the market risks entering a new downward cycle — with new yearly lows.
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