Bitcoin extended its sell-off on Wednesday as heavy liquidations swept through the derivatives market, pushing prices sharply lower and deepening already fragile sentiment across the crypto sector.
Key takeaways
- Bitcoin fell to around $70,000, marking a daily drop of roughly 4% and confirming a break below key short-term support.
- More than $950 million in crypto positions were liquidated over the past 24 hours, with long positions accounting for the vast majority.
- Technical indicators show Bitcoin is deeply oversold, but downside momentum remains dominant.
- Ethereum and major altcoins followed Bitcoin lower, reinforcing broad market weakness.
Bitcoin breakdown triggers wave of liquidations
Bitcoin failed to stabilize after losing the $74,000 level earlier in the session, accelerating losses toward the $69,000 area. On the daily chart, the move represents a decisive rejection from recent consolidation levels, exposing the market to further volatility. The Relative Strength Index has dropped into the low 20s, firmly in oversold territory, while the MACD remains deeply negative, signaling that bearish momentum has not yet fully exhausted itself.
The price decline coincided with a sharp spike in forced liquidations. According to CoinGlass data, total liquidations reached approximately $951 million in the past 24 hours, with long positions accounting for nearly $790 million of that total.
Bitcoin alone saw around $449 million in liquidations, followed by Ethereum at roughly $234 million, underscoring how leveraged positioning amplified the downside move.
Ethereum traded below $2,100, posting daily losses near 1-% and extending its weekly decline. Solana, BNB, and other large-cap altcoins also moved lower, offering little relief as risk appetite deteriorated across the board.
Despite the severity of the sell-off, broader indicators suggest caution rather than immediate reversal. While deeply oversold readings often precede short-term bounces, the lack of clear bullish divergence and the persistence of strong selling volume indicate that any rebound could remain corrective unless sentiment and liquidity conditions improve.
For now, traders remain focused on whether Bitcoin can stabilize above the $70,000 zone, as continued weakness risks triggering another round of liquidations and extending the broader market drawdown.
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