Bitcoin Fall: Long Positions Face Heavy Liquidations

Early in the week, selling pressure dragged BTC price down to $110,950. This move hit traders who had opened highly leveraged long positions, forcing them into losses.

According to data, a total of $840 million worth of positions were liquidated within 24 hours. Of this amount, $675.81 million came from longs, while $263.92 million were from short trades.

Reversal After Powell’s Speech

Last Friday, a dovish speech from Fed Chair Jerome Powell briefly lifted Bitcoin, sparking a rally. However, a major whale took advantage of the move to sell, causing the price to reverse sharply. As a result, Bitcoin has now fallen 11% from its August 14 all-time high of $124,500.

Key Levels to Watch

The latest liquidation heatmap shows strong buy orders clustered between $110,500 – $109,700, with additional interest stretching down to $108,000.

Analyst Jelle noted that Bitcoin needs to hold above its monthly open at $111,900 to avoid a deeper pullback. Failure to do so could push BTC back into its previous trading range, opening the door for another retest of the $100K level.

“Bitcoin is still wiping out leveraged traders at range lows, and the sharks don’t look satisfied yet,” Jelle warned, urging caution in the short term.

This content does not constitute investment advice. The cryptocurrency market carries significant risks, and you should always conduct your own research before making trading decisions.

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