Bitcoin Briefly Tops $81,000 Then Plunges, $1.1 Billion in Longs Liquidated

Stock News
Yesterday

Bitcoin reversed sharply after briefly breaking through the $81,000 mark, with the price falling to around $75,000 at one point, triggering violent turbulence across the derivatives market.

The sell-off, driven by a stampede of leveraged longs, forced the liquidation of positions worth as much as $1.1 billion (about 1.5 trillion Korean won) in a single day.

The upward momentum previously generated by short covering was quickly exhausted, replaced by a chain liquidation of long positions, forming a classic derivatives-market volatility episode.

In terms of price performance, CoinGlass data showed that at 5:30 a.m. on the 6th, Bitcoin was down 5.13% from 24 hours earlier at $76,055.

Major coins came under broad pressure, with Ethereum falling 6.87% to $2,248.72, while Solana dropped 5.40% to $89.78.

Looking back at the earlier move, after vote counting in the U.S. midterm elections ended, Bitcoin did break above $81,000, but open interest growth at that time was only 0.3%.

That extremely small increase indicated the price rise did not stem from spot buying or fresh capital inflows, but relied on forced repurchases of existing short positions.

Such a rally, lacking real buying support, was extremely fragile, and once profit-taking emerged, the market collapsed quickly.

Data compiled by Woofun AI showed that total forced liquidations over the past 24 hours reached $1.09 billion, of which 87.7%, or $952.34 million, came from long positions, while short liquidations amounted to only $133.23 million.

In the most recent 12 hours, liquidation value surged to $999.31 million, accounting for nearly 92% of the total.

As prices fell below key support, highly leveraged accounts were forcibly disposed of at market prices due to insufficient margin, creating a vicious cycle.

By asset, Bitcoin had the largest liquidation amount at $281.51 million, including $251.11 million in longs, followed by Ethereum at $173.26 million.

Solana saw $37.48 million in liquidations, while Hyperliquid accounted for $18.79 million.

A total of 211,460 traders were liquidated throughout the day.

By exchange distribution, Binance had the highest share at 46.2%.

The single largest liquidation occurred in Binance's Ethereum perpetual futures market, involving $10.94 million (about 15 billion Korean won) and belonging to a long position.

The current market focus is on the battle over key support levels.

CoinGlass data indicated that the $75,000 to $75,400 range contains substantial long liquidation pressure, and if prices enter that zone, more reverse trades could be triggered, intensifying downward pressure.

Conversely, the $76,800 to $77,300 range holds short liquidation liquidity, and if prices can recover to the $77,000 level, a short-term rebound may be triggered.

It is worth noting that these liquidation figures are reverse estimates based on open leverage data, not confirmed limit orders.

For the medium- to long-term trend, $73,000 is viewed as the first line of defense.

Well-known trader Daan Crypto Trades said that despite the large short-term decline, prices on the weekly chart remain within a major support zone, and a weekly close below $73,000 could mark the start of a trending decline.

Bitcoin's actual market average price is about $77,700.

Because the current price is below investors' average purchase cost, whether Bitcoin can hold the $75,000 mark will directly determine whether the market continues to sell off or welcomes a technical rebound.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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