Bitcoin Dips to $105,000, Sparking $191M Liquidations and Concerns Over Potential Drop Below $100,000

• BTC price breakdown: Bitcoin failed to hold above $107,000, sliding to $105,405 and triggering massive long position wipes.

• Altcoins under pressure: Assets like ETH at $3,500 and SOL at $166 reflect broader market weakness without a breakout.

• Leverage reset: Total 24-hour liquidations exceeded $1 billion, the highest since October 11, with open interest dropping to $33 billion.

Discover why BTC liquidations hit $191M in an hour amid a dip to $105K. Explore market impacts, whale moves, and recovery signals in this in-depth analysis.

What Caused the Recent BTC Liquidations Spike?

BTC liquidations spiked dramatically due to Bitcoin’s inability to maintain the $107,000 support level, leading to a sharp dip into the $105,000 range. This triggered over $191 million in long position liquidations within just one hour, as leveraged traders faced margin calls amid rising volatility. The event erased recent gains and amplified fearful market sentiment, with total 24-hour liquidations surpassing $1 billion for the first time since October 11.

BTC liquidations picked up again, as the leading coin dipped to a lower price range. | Source: Coinglass

Bitcoin’s price action over the past week involved multiple re-tests of the $107,000 threshold, but failure to break higher exhausted buyers. Short-term holders, particularly those entering at elevated prices, now face unrealized losses, contributing to the cascade of liquidations. Data from Coinglass indicates that long positions bore the brunt, with over $303 million wiped out in the last day alone.

How Has Hyperliquid Influenced BTC Trading Dynamics?

Hyperliquid has emerged as a key platform in the BTC trading landscape, recording $240 million in liquidations over the past 24 hours and leading the sector in activity. Open interest on the exchange rose slightly to $3.4 billion for BTC positions, with over 57% of whale activity skewed toward long bets despite the risks. This concentration highlights how decentralized perpetuals exchanges are drawing sophisticated traders seeking higher leverage, though it also amplifies liquidation events during downturns.

Volatility metrics underscore the tension: Bitcoin’s volatility index stands at 1.89%, a six-month high, while the Fear and Greed Index lingers at 42 points, signaling widespread caution. Expert analysis from on-chain data providers like Glassnode notes that BTC’s break below the 200-day moving average after prolonged sideways trading has reset leverage levels, with aggregate open interest across exchanges falling to $33 billion. “The liquidity vacuum post-October’s events has made the market fragile,” observes a senior analyst at a major crypto research firm, emphasizing how diminished short-side liquidity around $108,000 discourages aggressive bearish positions.

Whale behavior on Hyperliquid further illustrates this dynamic. One prominent trader, known for a near-perfect win rate, suffered a $17 million loss after closing positions during the dip, yet retains unrealized losses in ongoing holdings aimed at recovery. Conversely, the whale who profited from shorting ahead of the October 10-11 liquidation cascade has pivoted to long positions in BTC and ETH, anticipating a rebound. Liquidation heatmaps reveal trader hesitation, with accumulation clustering at higher levels and sparse short liquidity below current prices, per insights from TradingView’s aggregated data.

Beyond BTC, the ripple effects are evident in the altcoin sector. Bitcoin dominance holds steady at 58.5%, but assets like BNB dipping under $1,000, ETH consolidating around $3,500, and SOL falling to $166 demonstrate disproportionate downside pressure. ZCash stands as a rare outlier with modest gains, but overall, the absence of an altcoin season persists amid BTC’s weakness. Market observers from firms like Chainalysis report that correlated sell-offs have stalled broader ecosystem momentum, with trading volumes contracting as fear dominates.

The latest price recovery to $106,464 post-liquidation suggests some stabilization, as wiped-out long liquidity creates breathing room. However, without sustained buying above $107,000, analysts warn of further downside toward $100,000. Leverage ratios have moderated, reducing the immediate risk of a short squeeze, but the environment remains primed for volatility. Historical patterns from similar events in 2024 show that such liquidation flurries often precede short-term bottoms, provided macroeconomic factors like interest rate expectations remain supportive.

Frequently Asked Questions

What triggered the $191 million BTC liquidations in one hour?

The rapid BTC liquidations were sparked by a breakdown below the $107,000 support, pushing prices to $105,405 and forcing margin calls on overleveraged long positions. This one-hour event, totaling $191 million, reflects heightened sensitivity to price swings in a low-liquidity market, as reported by on-chain analytics platforms.

Is the current BTC dip signaling a bear market?

The BTC dip to $105,000 amid fearful sentiment at 42 on the Fear and Greed Index raises concerns, especially with volatility at 1.89%. While a break below $100,000 could accelerate bearish trends, historical data suggests these are often corrective phases rather than outright reversals, allowing for potential recovery if key supports hold.

Key Takeaways

• BTC Support Failure: The drop from $107,000 to $105,000 wiped $191 million in longs, underscoring fragile leverage in the current range-bound market.
• Whale Shifts on Hyperliquid: Prominent traders are adjusting from shorts to longs, with $3.4 billion in BTC open interest signaling bets on rebound despite recent losses.
• Altcoin Pressure: Dominance at 58.5% keeps altcoins suppressed; monitor for BTC stabilization to unlock broader market participation.

Conclusion

The surge in BTC liquidations to over $1 billion in 24 hours, driven by the dip to $105,000 and Hyperliquid’s intense trading activity, exposes underlying market vulnerabilities. With dominance firm at 58.5% and volatility elevated, traders should prioritize risk management amid fearful conditions. As Bitcoin eyes recovery above $107,000, staying informed on whale movements and leverage trends will be crucial for navigating this phase toward potential stabilization in the coming weeks.