Bitcoin (BTC USD) has fallen below the critical threshold of $90,000, hitting a new six-month low due to waning demand and persistent selling pressure. This decline has sparked a considerable liquidation event, primarily impacting long positions.
In the past 24 hours, total liquidations exceeded $413 million, with long positions accounting for approximately $369 million, while short positions were notably lower at just over $43 million. This liquidation wave follows a mid-week surge in positive funding rates, which may have contributed to the steep drop in Bitcoin prices.
Adding to the sell-off, a prominent whale in the market, who has held Bitcoin since 2011, liquidated 11,000 BTC valued at over $1.3 billion. The complete offloading of this whale”s holdings underscores the panic selling currently prevalent in the market.
While this mega whale”s actions significantly impacted Bitcoin (BTC USD) values, it doesn”t fully represent the behavior of all large holders. Interestingly, recent data indicates that whale activity has risen, with large orders executed near the $85,000 mark. In particular, Binance reported over $1.1 billion in long positions traded within the past 24 hours, while OKX saw $459 million in long trades.
This uptick in whale activity often signals attempts to buy the dip, suggesting a potential strategy of dollar-cost averaging. However, these buying zones align with periods of reduced bearish pressure, meaning sustained demand from whales is crucial for any upward price movement.
The recent freefall in Bitcoin prices has led to speculation regarding the potential end of the current bull market. Despite this, some analysts believe that the pullback could be a standard market correction, especially in light of increasing institutional interest.
Data reveals that whales holding between 100 and 10,000 BTC have taken advantage of the lower prices, accumulating record amounts totaling over 12 million BTC. This accumulation during price declines may provide the necessary confidence boost for the market, though whether this demand will result in a price pivot remains uncertain.
As Bitcoin remains deep in oversold territory, the prospect of further declines looms unless demand improves significantly.
