Despite a massive $359.7 million liquidation event, Bitcoin shows resilience, staying above short-term realized prices.
Large-scale Liquidation
According to CryptoQuant, a large-scale liquidation occurred recently, wiping out nearly $360 million in long positions. However, a sharp price drop was not observed. Instead, Bitcoin quickly rebounded and traded around $86,000, indicating strong buyer support and no panic selling. This recovery suggests that despite losses faced by over-leveraged traders, spot market participants remain steady. The liquidation appears to have corrected overheated derivatives positions, potentially setting the stage for a more sustainable upward movement.
Bitcoin Price and Momentum
A positive sign comes from the Realized Price – UTXO Age Bands chart. Currently, Bitcoin is above the short-term realized price for the 1-day to 1-week cohort at $86,000 and the 1-week to 1-month cohort at $84,000. These levels often serve as support zones for short-term holders. From a technical analysis perspective, Bitcoin's 50-day Moving Average ($85,250) remains a critical pivot. The price has recently bounced off this level and is trending above it, with the Relative Strength Index (RSI) sitting at around 50, suggesting closeness to oversold conditions. Despite slight cooling, Bitcoin's momentum remains intact. A retest of the $90,000 psychological level appears likely if momentum picks up again.
What’s Next for Bitcoin?
Bitcoin's resilience after liquidation and its ability to remain above key realized price levels underscore strong demand. However, BTC needs sustained momentum and increased volume to break out of its current range. If buyers successfully protect short-term support zones, the next bullish movement could already be underway.
In summary, Bitcoin's resilience highlights strong market support despite recent liquidations. However, more volume and momentum are required for upward movements.
