The cryptocurrency market saw a sharp downturn on Tuesday, with Bitcoin falling below $102,000 amid a wave of long liquidations and broad-based weakness across major assets.
- Bitcoin drops below $102K, losing nearly 2% in 24 hours
- Total crypto market cap declines to $3.42 trillion
- $630 million in leveraged positions liquidated in 24 hours
- Longs dominate liquidations with $527 million wiped out
- Bitcoin and Ethereum lead the liquidation heatmap
- RSI and MACD suggest continued short-term weakness
The global crypto market cap dropped 2.18% to $3.42 trillion, according to CoinMarketCap data.
Bitcoin declined 1.9% over the past 24 hours to $101,621, extending weekly losses to over 1.5%. Ethereum followed with a steeper 2.9% daily decline, trading near $3,391, while XRP slipped 4.1% to $2.33 despite maintaining a weekly gain of 3.6%.
The latest correction erased nearly $70 billion in total market capitalization, intensifying concerns about short-term volatility as traders unwind leveraged positions.
Major Liquidations Sweep Across the Market
According to Coinglass data, over $630 million in leveraged positions were liquidated in the past 24 hours, affecting more than 157,000 traders. Longs accounted for the majority, with approximately $527 million in bullish positions wiped out compared to $104 million in shorts. In the past hour alone, around $250 million were liquidated as the market sentiment turns bearish.
Bitcoin and Ethereum dominated the liquidation board with $166.9 million and $163.9 million respectively, followed by POPCAT at $63 million and ZEC at $21.5 million. The largest single liquidation occurred on the Hyperliquid exchange, valued at $21.29 million.
This heavy flush suggests traders were caught off guard by the latest downturn, with most liquidations concentrated during U.S. trading hours as Bitcoin failed to hold key support levels.
Technical Indicators Signal Weakness
On the 4-hour Bitcoin chart, the MACD remains in negative territory, showing limited buying momentum, while the RSI hovers near 40 — a level often seen before additional downside pressure. Analysts warn that failure to reclaim the $104,000–$106,000 range could open the door to further losses, possibly toward the mid-$90,000 zone.
The decline marks a break from recent stability following weeks of sideways movement. Despite a broader bullish structure over the long term, short-term technicals indicate exhaustion, with traders opting to de-risk amid tightening financial conditions and declining market breadth.
Market Outlook
With macro uncertainty still weighing on risk assets, investors are watching whether Bitcoin can establish a firm base above $100,000 before the next leg higher. Analysts suggest that the latest shakeout may reset leverage in derivatives markets, potentially setting the stage for a more sustainable recovery once liquidity conditions stabilize.
For now, volatility remains high, and traders appear to be in “wait and see” mode as the market digests this latest round of liquidations.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.