The recent volatility in the digital asset market has triggered massive crypto liquidations exceeding 250 million dollars in just 24 hours, impacting both long and short positions significantly. According to data from CoinGlass and Wealth Capital analysts, Bitcoin maintains erratic behavior that has forced a retest of critical local support levels near the 68,500 dollar price point.
On the other hand, price fluctuations between 71,000 and 68,000 dollars created a scenario where sellers attempt to regain market control, wiping out approximately 130 million in short positions and 150 million in longs consecutively. In this way, the current trading environment is characterized by a high concentration of leverage at specific levels, suggesting a possible sweep towards the 66,000 dollar zone very soon.
The market pulse between supply and insufficient demand
Likewise, indicators from Material Indicators suggest that Bitcoin whales have maintained a constant selling trend over recent trading days, which weakens the current price structure considerably. This selling pressure, added to the lack of new large-scale institutional capital inflows, has made it difficult for bulls to sustain the upward momentum required to break through upper resistances.
Furthermore, order book data reflects that, although the price seems to stay within a narrow range, the liquidity accumulated at the channel extremes acts as a magnet for the price action. Therefore, technical analysts warn that the weakening in the absorption of distributed supply could lead to a prolonged consolidation phase or even a much deeper market correction.
Can Bitcoin absorb the selling pressure coming from miners?
On the other hand, the CryptoQuant platform has warned about a worrying divergence between coin spending and negative market demand growth, which historically precedes significant cycle changes. As fresh capital does not expand at the same rate as supply, the market’s ability to absorb sales weakens, increasing the risk of further drops during any sudden price movement.
However, miners also play a crucial role in this financial narrative, as they have increased their asset transfers toward cryptocurrency exchanges to cover accumulated operating expenses. Nevertheless, this constant flow of cryptocurrencies to exchanges adds an additional layer of resistance, complicating any sustained recovery attempt by retail investors who are currently seeking price stability.
As the market processes these liquidation volumes, focus remains on Bitcoin’s ability to establish a solid base above 68,000 dollars, thus avoiding a much larger price decline. Therefore, investors must closely monitor whale activity and institutional inflows, factors that will determine if the price manages to break upward or succumbs to the prevailing bearish pressure.
