- Bitcoin faced over $342 million in liquidations amid a $1 billion crypto sell-off but shows signs of stabilizing above $100K.
- Key resistance around $113K–$114K will likely determine if Bitcoin can bounce back and continue its upward rally.
The crypto market recently witnessed a staggering $1 billion in liquidations, with Bitcoin bearing the brunt — accounting for over $342 million of the sell-offs. Despite this dramatic shakeout, market signals suggest that Bitcoin might still be gearing up for a comeback.
The Liquidation Surge: What Happened?
The massive liquidation spike followed a heated public clash between Elon Musk and Donald Trump, which sent shockwaves through the BTC futures markets. Bears aggressively pushed Bitcoin below $102,000, triggering widespread long-position liquidations. The Alphractal Aggregated Liquidation Heatmap highlighted intense sell pressure between $107,000 and $114,000, with $108,000 and $113,000 emerging as key battlegrounds.
Yet, intriguingly, the short-selling momentum appears to be thinning. This suggests that the bears might be running out of steam, at least for now, creating a window for bulls to potentially take control.
Also read: BNB Nears All-Time High as Strong Tokenomics and Staking Demand Defy Market Trends
Why the Odds Favor an Upside Move
Bitcoin’s recent dip below $100,000 brought it closer to the Short-Term Holder Realized Price, hovering near $93,000 — a level often seen as a bottom zone. Meanwhile, the liquidation of leveraged long positions above $100,000 may have “reset” the market, clearing the path for a stabilization just above $100,000.
Traders are now laser-focused on the critical resistance zone between $113,000 and $114,000. Breaking through this level could trigger more liquidations on the short side and propel Bitcoin higher.
The Golden Cross and What It Means
Adding to the bullish case, Bitcoin recently retested its Golden Cross level — the point where the 50-day moving average crosses above the 200-day moving average. Historically, this technical pattern has been a strong signal of bullish reversals. Back in early November 2024, BTC responded positively to this event, hinting at a similar move this time around.
If Bitcoin can hold above $100,000 and reclaim the $103,000 to $106,000 range, it’s poised to test $111,000 and potentially higher. But if it slips below $99,000, the market could tilt back towards lower support levels between $93,000 and $97,000.
What’s Next for Bitcoin?
Despite the recent volatility and the uncertain macro backdrop—exacerbated by the ongoing political drama—the technical outlook gives Bitcoin a fighting chance. For traders and investors, the coming days are crucial as BTC tests these pivotal levels. A successful defense above $100,000 could signal the start of a fresh rally, proving once again that Bitcoin has resilience even after massive liquidation events.
Stay tuned as the crypto market tries to find its footing—Bitcoin’s next move could be the one to watch.
