Bitcoin dips below $100,000, triggering $658 million in liquidations

Bitcoin’s recent drop below $100,000 has reverberated across the cryptocurrency market, sparking $658 million in liquidations. Many long positions were affected, forcing investors to rethink their strategies. US-based selling pressure is seen as a major driver, highlighting a significant shift in a market that had been relatively stable. The factors behind this decline and its implications for Bitcoin and the broader crypto landscape are now under scrutiny.

Price overview
Bitcoin is currently trading at $96,048.24, down 5.52%. Its decline from the yearly high of $126,198.07 underscores the magnitude of this pullback. Market capitalization has fallen to $1.94 trillion, reflecting the intensity of the sell-off. The drop is largely linked to US investor selling and strategic liquidations that have sent ripples through the crypto market.

Key factors behind the decline
The downturn is driven by concentrated US selling and the breach of critical liquidity levels, causing short-term volatility. Technical indicators, such as an RSI of 35.16, suggest Bitcoin may be entering oversold territory, signaling potential further swings. Analysts highlight these technical trends as key indicators of possible market volatility.

Impact on crypto liquidations
The sell-off has triggered $658 million in liquidations, predominantly affecting long positions. Other major cryptocurrencies were also hit, with ETHUSD down 6.94% to $3,176.64 and SOLUSD falling 7.98% to $141.03. This widespread selling emphasizes the interconnected nature of crypto assets.

Outlook for Bitcoin and crypto markets
Bitcoin’s short-term trajectory remains uncertain. Forecasts suggest potential stabilization around $96,114.59, but volatility is expected to continue. Investors should monitor technical indicators like MACD and ADX, which can highlight strong trends. Further short-term declines are possible before any recovery.

Bitcoin’s drop below $100,000 underscores the cryptocurrency market’s unpredictable nature. With $658 million in liquidations shaking portfolios, careful analysis and strategic planning are crucial. US-driven selling pressure highlights market vulnerabilities, and analysts advise keeping a close watch on technical signals and external factors that could influence market dynamics.