Bitcoin drops below $90k as $708.9m crypto liquidations hit leveraged longs

Bitcoin fell below $90,000 on 21 January. The drop extends a broader pullback that a sharp wave of forced unwinds has accompanied across the crypto derivatives market.

On the 12-hour timeframe, Bitcoin traded as low as $89,162 before settling around $89,368, down roughly 1.9% on the session. The move also pushed the Relative Strength Index [RSI] to -33.7. This level typically signals weakening momentum after sustained selling pressure.

Source: TradingView

A leverage flush dominated by long liquidations

Liquidation data showed the sell-off was driven largely by long-side leverage being taken out.

According to CoinGlass figures, total liquidations reached $708.88m over the past 24 hours.  $648.78m was from long positions versus $60.09m from shorts. 

Source: Coinglass

Over the past 12 hours, liquidations totaled $466.40m, again skewed heavily toward longs [$422.68m] compared with shorts [$43.72m].

CoinGlass also reported that 166,432 traders were liquidated during the 24-hour window.

This kind of imbalance typically points to a market that was positioned for continuation or a bounce. However, it was caught offside as spot prices pushed lower, triggering cascading stop-outs.

Bitcoin leads the downturn as traders watch key levels

With Bitcoin losing the $90k handle, attention is likely to shift to whether price can quickly reclaim that psychological level, or whether sellers continue to defend it on any rebound.

From a market structure perspective, the combination of a sub-$90k print and RSI near the low-30s suggests the move has entered a more fragile phase.

The bounces can occur, but are often volatile and sensitive to headline-driven risk sentiment and funding positioning.

Still, the clearest signal from the data is positioning. The liquidation skew shows the market has been deleveraging aggressively. This can sometimes reduce near-term sell pressure once forced liquidations slow.

Final Thoughts

• Bitcoin breaking below $90k coincided with a leverage reset, with roughly $708.9m liquidated in 24 hours and longs taking the bulk of the hit.
• With RSI near -34 on the 12-hour chart, BTC is weakening at support, making the next moves around $90k a key indicator of sentiment and positioning.