Bitcoin fell to $65,548 and came under heavy selling pressure as Longing positions were liquidated, while many whales switched to opening Short positions in the Derivative market.
The decline occurred amidst heightened downside volatility across the cryptocurrency market. Liquidation data and Derivative flows suggest traders are reducing risk, while momentum indicators continue to lean toward a potentially prolonged downtrend scenario.
- BTC dropped to $65,548, then recovered slightly to $66,338; liquidation mainly came from Longing positions.
- Whales are increasing their Short positions; the Longing/ Short Ratio is below 1 in 48 hours and at 0.93.
- Selling pressure dominated both spot and futures; net flow in futures fell to -$1.83 billion, and the risk of breaking below $65,000 remains.
Bitcoin plunges as Longing liquidation erupts.
BTC dropped to $65,548 before trading around $66,338, with $183 million worth of liquidations, of which $170 million came from Longing positions.
Bitcoin [BTC] continued to weaken during the broad correction in the crypto market. At the time of writing, BTC was down 3.3% on the day and hit a 3-week Dip of $65,548, before recovering slightly to $66,338.
CoinGlass data shows Bitcoin liquidation reached $183 million, of which $170 million was Longing positions. When large amounts of Longing positions are "swept up," forced selling often leads to sharper price drops and can trigger further liquidation rounds.
Bitcoin whales are switching to opening Short positions.
Whale activity in the Derivative market increased sharply, with many new positions leaning towards Short while the Longing/ Short ratio remained below 1.
Despite many positions being liquidated, on-chain data and wallet tracking show that whales are still restructuring Derivative portfolios: some are closing positions to take profits, while others are opening new positions to profit from price declines.
According to Lookonchain , a whale opened an additional Short position with 2x leverage, holding 410 BTC , worth approximately $27 million. Prior to this, the trader was recorded as having profited from previous BTC Short positions with a total profit of $8.65 million.
Onchain Lens also stated that the wallet “pension- USDT ” closed its Short BTC position, generating a profit of $1.7 million.
This trend is not an isolated one. The Longing/ Short Ratio has remained below 1 for the last 48 hours and is at 0.93 at the time of recording, reflecting the majority of futures participants leaning towards a bearish scenario and expecting prices to continue to slide.
Selling pressure continues to dominate both the spot and futures markets.
Investors are withdrawing from both spot and futures contracts to take profits or limit losses, resulting in negative futures cash flow and adding further downward pressure on BTC.
When BTC falls below key levels, the common behavior is to reduce risk: selling spot to protect profits or cut losses, and closing some futures positions to avoid liquidation during periods of high volatility.
In the spot market, Lookonchain reported that NYDIG transferred 4,500 BTC (approximately $295.5 million) to Wintermute, Cumberland, FalconX, B2C2 Group, and Galaxy Digital. The transfer of large amounts of BTC by whales to exchange-traded/market maker institutions is often closely watched as it may be related to liquidation needs or reallocation.
In the futures market, CoinGlass shows a significant outflow of funds from futures: $16.89 billion outflow compared to $15 billion inflow. As a result, net flow decreased by 243% to -$1.83 billion, indicating aggressive selling/closing of positions.
The downward momentum is consolidating, with the $65,000, $63,400, and $68,000 levels becoming key targets.
Momentum indicators like SMI and MOM are in negative territory, suggesting the downtrend may continue; BTC could test $65,000 and then $63,400 if selling pressure persists.
The decline is described as stronger as the Stochastic Momentum Index (SMI) retreats further into negative territory. Simultaneously, the Momentum Indicator (MOM) continues to remain in negative territory, reinforcing the view that the current trend remains bearish.
If sellers continue to dominate, BTC could break the $65,000 support level and retreat to the $63,400 region. Conversely, if the external factors that are draining liquidation from the market cool down, BTC could bounce back, reclaim $68,000, and aim to retest $70,000.
Frequently Asked Questions
Why did Bitcoin plummet to $65,548?
BTC fell amid increased downside volatility and large liquidation of Longing positions. CoinGlass recorded $183 million in Bitcoin liquidations, of which $170 million belonged to Longing positions, increasing forced selling pressure and dragging the price down.
What does the whales Short their positions signify?
It indicates that a large segment of investors are betting on a short-term downtrend or using Short for hedging. The Longing/ Short Ratio below 1 in 48 hours and at 0.93 reflects bearish sentiment in the futures market.
What price level is important for BTC right now?
The bearish scenario emphasizes the $65,000 support zone and the next target of $63,400 if broken. The bullish scenario focuses on the possibility of reclaiming $68,000 and then challenging the $70,000 zone.
