After $106K Rejection and $685M in Liquidations, Can BTC Bounce Back?

Key Insights

• Bitcoin briefly hit $106,000 on Sunday before crashing $2,000 within minutes.
• Over $280 million in liquidations were recorded in 24 hours and affected over 90,000 traders from either side.
• A $300 million long position opened by a whale on HyperLiquid may have been the cause of this price somersault.
• ETH longs were the most affected in the liquidation charts, with a single $8.2 million position wiped out.
• BTC is close to forming a golden cross and could be replaying a bullish scenario from October 2024.

Bitcoin has kept traders on edge over the weekend, especially with its price pumps and dumps that have racked up nearly $200 million in liquidations over the last 24 hours.

Bitcoin recently hit a new multi-month high on Sunday before quickly crashing back down.

As a result, tens of thousands of traders are now liquidated, with speculation flying around for what comes next for BTC.

Is a comeback around the corner?

A Wild Ride for Bitcoin

The weekend was mostly quiet, with Bitcoin trading underneath the $105,000 zone.

However, everything changes on Sunday, when the cryptocurrency jumps from around $104,000 to a peak of $106,000.

This marked the highest Bitcoin price since the end of January.

However, the bullish momentum didn’t last long. Almost immediately after hitting $106,000, the bears swung into action and rejected the new highs.

Said rejection caused a tumble of $2,000 in Bitcoin within minutes and sent it crashing back below to its starting point.

This up and down movement wiped out hundreds of millions across the board with both long and short position holders suffering.

According to data from CoinGlass, nearly $200 million in leveraged Bitcoin positions were wiped out in just 24 hours.

The interesting aspect of this event is that traders from both sides suffered $685 million in liquidations, most of the price liquidations came from Ethereum with $265 lost, and most of the liquidations happened within the last 12 hours.

During this time, more than 90,000 traders were liquidated.

Massive Whale Activity on Hyperliquid

But why did this up and down price movement occur on Bitcoin?

Part of this volatility may have come from a large position opened by an anonymous whale on HyperLiquid.

On-chain data shows that this individual entered a long position worth nearly $300 million on Hyperliquid during the time of this price somersault.

While the size of this position has since shrunk to around $237 million, it is clear that this event might have played a major role in how the market behaved.

Can Bitcoin Make a Comeback This Week?

While Sunday’s price action was a major disaster for traders on both sides, many of them are looking ahead towards a major bullish signal.

For some context, golden crosses happen when Bitcoin’s 50-day simple moving average (SMA) crosses above its 200-day SMA.

This indicates that short-term momentum may be overtaking long-term resistance.

And according to data from TradingView, BTC is just days away from confirming this pattern.

Something similar to this price movement happened in late October of last year, right after a “death cross” that had initially spooked investors.

Instead of confirming a bearish trend, that death cross turned out to be a bear trap and prices spiked from $70,000 to a new all-time high above $109,000 by January 2025.

Something similar to this might be playing out now and if history repeats itself, the next few weeks could be massively bullish for Bitcoin.

A Market on the Edge

Despite Sunday’s flash crash, Bitcoin is still trading just above $102,000 at the time of writing.

The incoming golden cross could be a major catalyst that could drive the next big move.

However, as the weekend’s price action showed, volatility is back in full force, and traders using leverage must keep their eyes open for what comes next.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.