Haciyev Reşit 
Bitcoin (BTC) experienced a sharp decline, falling from $109,000 to $104,700, triggering massive liquidations across the market. Over the past 24 hours, more than $1 billion in leveraged positions were liquidated amid heightened volatility in the cryptocurrency market.
This steep price movement has prompted investors to reassess their exposure to market risk. The sudden downturn reflects the current fragility in market sentiment and underscores how rapidly leverage can amplify losses during sharp corrections.
Massive Liquidation Wave in Leveraged Trades
Data shows that the total amount of liquidations within 24 hours exceeded $1 billion, marking one of the largest single-day liquidation events in recent weeks. Investors engaged in leveraged trading faced forced position closures as prices of Bitcoin and Ethereum (ETH) declined sharply.
$105,000 Becomes a Critical Level for Bitcoin
According to analysts, Bitcoin’s drop below $106,000 indicates the breakdown of a key technical support level. Sustained price action below this threshold could open the door to a potential pullback toward the $100,000 range.
However, some market experts believe that this correction could trigger a short squeeze, pushing the price back up into the $107,000–$108,000 range as traders rush to cover short positions.
In parallel with Bitcoin’s steep decline, Ethereum (ETH) also experienced a downturn. Over the past 24 hours, ETH has fallen by more than 4%, dropping below the $3,800 level. A significant portion of the recent liquidations occurred in ETH futures positions, contributing to a broader risk-off sentiment across the cryptocurrency market.
Causes Behind the Liquidation Wave
Analysts point to several key factors behind the recent wave of liquidations:
- Excessive leverage: Rising margin ratios in derivatives markets have caused even small price movements to trigger massive liquidations.
- Macroeconomic uncertainty: Higher U.S. Treasury yields and a strong dollar index have accelerated capital outflows from risk assets.
- Profit-taking: After Bitcoin briefly tested the $110,000 level, many traders chose to realize short-term profits.
The combination of these factors triggered a cascade of forced liquidations across the market.
Market Outlook: A Correction or the Start of a New Downtrend?
The past 24 hours’ liquidation wave serves as a reminder that the crypto market continues to operate in a high-risk and volatile environment. Experts note that whether Bitcoin can hold the $105,000 support level in the coming days will be a key determinant of market direction.
While short-term volatility is expected to persist, analysts believe that institutional demand and ETF inflows could support a medium-term recovery, potentially paving the way for Bitcoin to stabilize and regain momentum.
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