Bitcoin prices were in turmoil on Sunday as a series of whale sell orders caused a rapid $2,000 drop, mass liquidations, and then an equally rapid recovery.
These moves wiped out both long and short traders in a matter of hours, raising fresh concerns about manipulation of low liquidation and Order Book fragility at a time when Bitcoin remained above $91,000.
A massive sell order has hit the market.
Some analysts reported that there appeared to be a coordinated sell-off, as more than 15,565 BTC, worth about $1.39 billion, was Dump into the market in just one hour.
“Here’s why the market crashed: whales Dump 4,551 BTC, Coinbase Dump 2,613 BTC, Wintermute Dump 2,581 BTC, Binance Dump 2,044 BTC, BitMEX Dump 1,932 BTC, Fidelity Dump 1,844 BTC. A total of 15,565 BTC worth $1.39 billion was Dump in one hour! This was an organized sell-off,” Wimar wrote in a post.
The sudden surge in supply to the market accelerated Bitcoin's drop from $89,700 to $87,700, setting the stage for a wave of liquidations .
trap for small investors
The sharp initial drop wiped out $171 million in long-term BTC value, which was caught off guard by a $2,000 drop in minutes before recovering just as strongly. At the time of writing, Bitcoin is at $91,494.
Bitcoin (BTC) Price Performance. Source: TradingViewAlong with this rapid recovery, nearly $14 million in short positions were liquidated in the past hour and over $91 million in the past four hours.
“This is another example of manipulation during the weekend when liquidation is low to wipe out both leveraged long and short positions,” Bull Theory said .
Data from Coinglass confirms the extent of the damage. In the past 24 hours, 121,628 traders were liquidated, resulting in a total of $346.67 million in liquidations.
Liquidation of cryptocurrencies. Source: Coinglasswarning from analyst
Market commentators say this is no ordinary move, with Marto suggesting the event is no coincidence.
“People keep calling this volatility. It’s not. This is intentional liquidation harvesting. When the Order Book is weak, whales turn the price like a door hinge and make money on both sides,” he wrote .
Others pointed to the speed of the recovery, with Lenny, a trader known for tracking liquidation flows, commenting on the price volatility.
“Honestly, the BTC drop to 89k was absorbed quickly. It wasn't noise,” Lenny commented .
The rapid absorption shows that strong spot demand remains even as heavy liquidation action continues at weekend lows.
entering a new trading week
Bitcoin prices are recovering from weekend losses but still showing signs of strain during the day. Double liquidations show that thin Order Book over the weekend remain a target for large players capable of moving billions of dollars in minutes.
Spot demand could stabilize price action next week, especially as liquidation is secured and Derivative markets reset.
With over $300 million liquidated, Bitcoin enters the next trading sessions with leverage wiped out, but also increased sensitivity to further moves from whales.
Meanwhile, data shows that $1 billion in short positions are at risk of being liquidated if Bitcoin price rises to $93,000.
Notably, the $93,000 threshold is only about 2% away from the current level.
