The crypto market absorbed another sharp liquidation wave in the past 24 hours. Bitcoin liquidations reached $297.17 million, while Ethereum saw $491.97 million, according to the article. Shorts were a small slice of the damage: only 7.9% for BTC and 7.8% for ETH. Most forced selling therefore came from long positions as prices fell fast. Bitcoin dropped 3.20% and Ethereum fell 7.90% within hours.
Liquidation pressure builds
The move pushed Bitcoin to a low near $73.5k. Sentiment was already weak before the drop, and the speed of the cascade likely made traders more risk-averse. When long positions are cleared in a short window, the market often needs time to reset. It can also create sharp rebounds if buyers step in, but the first reaction is usually caution.
What set off the sell-off
Market commentary pointed to recent security incidents at Binance and Mercado Bitcoin as a drag on sentiment. The loss of a key onchain support level also warned of a deeper correction. In the S&P 500 futures market, the Kobeissi Letter said an implied $300 billion in market cap was erased a minute after the 6.00 PM ET open. Less than ten minutes later, those losses were gone as traders bought the dip. That reaction suggested buyer strength, which could feed into crypto demand later during the New York session. For now, though, crypto has not shown the same quick recovery.
Technical levels and the $70K question
Bitcoin recently fell below its true market mean at $77.6k and is now trading under the 50-week moving average. Galaxy research head Alex Thorn noted that BTC has slipped below this average only twice after reclaiming it as a post-bear bottom. In 2012 and 2019-20, those losses did not lead to new weekly lows. The weekly structure was still bullish after a close above $82,850, and Thorn said the weekly low at $57.8k was not at risk based on that history.
Momentum, however, is bearish. A drop below $70k looks feasible, and more losses appear likely in the coming days. The $65k-$66k area would represent a deep discount opportunity for buyers if the sell-off extends. The key question is whether the market can stabilize before that zone is tested.
