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Major Cryptocurrency Correction Triggers Massive Liquidations
Bitcoin's price fell to approximately $116,000 (€98,512) today, marking a 2.3% decline within 24 hours. This downturn triggered over $600 million in leveraged position liquidations across cryptocurrency exchanges.
Leveraged Trading Amplifies Losses
Data from CoinGlass indicates 213,729 traders faced automatic position closures, collectively losing $732 million. Bitcoin long positions accounted for $140 million of these liquidations, while Ethereum saw over $100 million in long positions wiped out as its price dropped to $3,598 (€3,095). Dogecoin also experienced significant liquidations.
Technical Factors Drive Decline
The correction appears driven by technical market dynamics rather than fundamental news. When Bitcoin failed to break the $119,000 resistance level, sentiment shifted rapidly. Analyst Ash Crypto described this as a "leverage flush" - a market clearing of overextended long positions.
Spot Market Shows Underlying Strength
Despite the downturn, on-chain data reveals continued Bitcoin accumulation. More BTC is being withdrawn from exchanges than deposited, indicating long-term holder confidence. However, approximately $6.4 billion in leveraged long positions on Binance remain vulnerable to further price drops.
Potential Downside Risks
Market analyst Rahul Nambiampurath warns that stabilization below $117,000 could trigger accelerated declines toward $105,000-$103,000 support levels. The high concentration of leveraged positions creates ongoing vulnerability to volatility cascades.
