Bitcoin price drop of ~17% from $122,500 to $101,500 triggered a $19.29B liquidation wave that closed positions for 1.65 million traders. This sharp BTC sell-off forced a large long squeeze and left the market consolidating between $108,000 and $120,000 as participants await direction.
Bitcoin plunged ~17% in hours, erasing recent gains and testing key support at $108,000.
Over 1.65 million traders were liquidated, totaling $19.29 billion in forced closures across major cryptocurrencies.
Long positions accounted for roughly $16.8 billion; Bitcoin and Ethereum led the liquidation impact.
Bitcoin price drop wipes out $19.29B in leveraged positions; learn how the 17% BTC plunge triggered 1.65M liquidations and what support levels traders watch.
What caused Bitcoin’s 17% price drop and $19.29B in liquidations?
Bitcoin price drop was driven by a rapid reversal from new highs, triggering cascading sell orders and a long squeeze. Sharp loss of short-term support near $119,979 pushed BTC from $122,500 to $101,500, forcing $19.29 billion in liquidations and impacting 1.65 million trader accounts.
How did the liquidation wave unfold and which assets were hit hardest?
The liquidation wave began after BTC recorded a new all-time high near $124,545 and then broke below short-term resistance. Data reported by market trackers and traders shows long positions made up approximately $16.8 billion of the $19.29 billion total. Bitcoin saw about $5.36 billion liquidated, Ethereum $4.42 billion, Solana $2.00 billion and XRP $706 million.
Bitcoin drops 17% from $122,500 to $101,500, wiping out $19.29B in leveraged positions as traders face massive liquidations.
- The price of Bitcoin dropped in a matter of hours from $122,500 to $101,500, removing recent gains and testing the significant support zone around $108,000.
- Over 1.65 million traders were liquidated, corresponding to a total loss of $19.29 billion, as Bitcoin and Ethereum drove the liquidation wave.
- The market has been consolidating within the range of $108,000-$120,000, waiting to determine whether a breakout will occur or a further slump of the price.
Bitcoin fell close to 17% within a span of a few hours, from $122,500 to $101,500, and this caused a cascade of liquidations across the board and substantially greater volatility for all of the top cryptocurrencies.
Why did BTC reverse so sharply after a new all-time high?
After hitting roughly $124,545, BTC encountered heavy profit-taking and a loss of short-term support at $119,979. That break activated stop-losses and margin calls, which snowballed into a classic long squeeze. Technical indicators showed sellers overwhelming bids, producing rapid downside pressure before buyers stepped in around $113,000 and later near the $108,000 support zone.
Bitcoin Faces Sharp Reversal After Reaching New All-Time High
The cryptocurrency market experienced extreme sell pressure as the Bitcoin price made a steep pullback following recording a new all-time high at $124,545. The same pullback erased much of the recent gains in a jaw-dropping rally phase and pushed BTC towards a crucial support level of about $108,000. Crypto Patel describes that the market declined from $122,500 to $101,500 within hours, which reveals how unpredictable the market could be.
Source: Crypto Patel
Technical charts show that Bitcoin lost the short-term resistance level of $119,979, causing cascading sell orders. The daily candle shows a bit of a bounce around $113,000, indicating that buyers are attempting to return. Yet recovery momentum will be questionable unless Bitcoin gets back above the $117,000–$120,000 range.
If price action does not maintain above key support areas, trends will suggest the market will try and test the zone of $100,000–102,000. If the price continues to stay above $119,000, there is a chance we can view the broader bullish trend, which is still intact in the larger time frames.
$19.29 Billion in Liquidations Sweep Across the Market
The sudden decline triggered a record wave of liquidations, totaling $19.29 billion in the past 24 hours. Data shared by market trackers shows that over 1.65 million traders were liquidated, marking one of the largest events in recent history. Long positions accounted for $16.8 billion of the total, signaling an extensive long squeeze as prices fell rapidly.
Source: Coinglass
Bitcoin traders experienced the biggest amount of liquidations, worth about approximately $5.36 billion. Ethereum came thereafter at about $4.42 billion. Solana was at $2.00 billion, and XRP followed with $706 million in liquidations. The biggest single liquidation was for $203.36 million and happened on Hyperliquid on the ETH-USDT pair.
This forced closure event is a manifestation of excessive leverage in the market, as traders had positioned themselves aggressively for continued upside. Once long positions quickly unwound, it caused the downside move to expand temporarily as part of a short-term correction.
Market Awaits Stability as Bitcoin Consolidates Near Support
Since its sharp drop, Bitcoin has been holding between a good support of approximately at $108,000 and a resistance of approximately at $120,000. Price action suggests traders are assessing direction amid lower liquidity in the markets. A breakdown below support would likely extend correction toward the $100,000 area, while a move above resistance would likely signal renewed bullish interest.
While the latest liquidation flush may have been an opportunity to reset some over-leveraged positions and may align with a healthier structure for prospective moves, general market participant sentiment continues to be cautious, while longer-term fundamentals look relatively stable as traders await confirmation of recovery and risk appetite.
The post-liquidation flush is indicative of the volatility of price discovery at elevated levels, and the wider trading community is observing both key zones and how the market holds up post one of the largest liquidation events since 2021.
Frequently Asked Questions
How many traders were liquidated during the Bitcoin sell-off?
Approximately 1.65 million traders were liquidated during the event, contributing to a cumulative $19.29 billion in forced closures across BTC, ETH and other major tokens.
What support and resistance levels matter after the drop?
Key support is between $100,000–$108,000, while immediate resistance sits around $117,000–$120,000. Holding above $119,000 would favor the broader bullish trend; failure may prompt tests of the $100,000 zone.
Was this driven by long or short liquidations?
Long liquidations dominated the event, accounting for about $16.8 billion of the $19.29 billion total, indicating a significant long squeeze as the market reversed sharply from highs.
Key Takeaways
- Rapid BTC reversal: A 17% drop erased recent gains and exposed short-term support weaknesses.
- Massive liquidations: $19.29B total; ~1.65M traders affected, with longs making up most losses.
- Watch support zones: $108,000 and $100,000 are critical; recovery requires reclaiming $117,000–$120,000.
Conclusion
The Bitcoin price drop and resulting liquidation wave underscore how concentrated leverage can amplify volatility. Traders and institutions will watch the $108,000–$120,000 band closely for signs of a sustainable recovery. For now, market participants should manage risk, monitor liquidity, and follow official exchange data and analytics providers for updates.