Bitcoin traders suffered about $250 million in liquidations over 24 hours as heavy leverage and sharp price swings triggered forced position closures across major crypto exchanges.
The sell-off unfolded as Bitcoin traded around $68,000, with liquidity heatmaps showing dense clusters of leveraged positions between $66,000 and $72,000 that amplified volatility.
Analysts said excessive leverage left traders exposed to rapid price moves, causing automatic liquidations as the market pushed through key technical levels.
Despite the shakeout, some technical indicators point to a potential rebound, with the relative strength index entering oversold territory and bullish divergences appearing on daily charts.
On the fundamental side, on-chain data shows continued selling pressure from large holders, while miners’ reserves have remained broadly stable, suggesting limited capitulation.
Market participants are increasingly focusing on risk management strategies such as reducing leverage, tightening stop-loss orders and closely watching support and resistance zones.
The episode highlights Bitcoin’s ongoing volatility, leaving traders split on whether the liquidation wave signals further downside or sets the stage for a short-term recovery.
At the time of reporting, Bitcoin price was $68,575.27.