"Multi-head stampede" chain reaction triggered! BTC drops below $93,000, $860 million in collective liquidation

Cryptocurrency markets have faced a difficult start to the week. Bitcoin has recently been under continuous pressure from above $95,000, ultimately breaking below the $93,000 threshold, with a 2.4% decline over the past 24 hours. As the issue of excessive long concentration becomes increasingly apparent, this correction has evolved into a chain reaction of forced liquidations. As of the latest data, Bitcoin’s trading price has reached $90,050, with a positive turnaround to +0.99%, but the market remains shrouded in uncertainty.

Excessive Long Concentration, Liquidation Wave Gathers Momentum

According to CoinGlass data, during Bitcoin’s retreat from the $95,000 to $97,000 range, the crypto derivatives market experienced over $860 million in liquidations within 24 hours, with as much as $780 million coming from long positions. The hidden risk signals behind these figures are very clear: in the previous rebound, the concentration of bullish investor positions far exceeded reasonable levels. Once the price reversed, it immediately triggered a long squeeze, accelerating the decline.

Meanwhile, gold prices continued to hit new highs, rising 1.7% to $4,600 per ounce. This capital flight indicates that rising geopolitical risks are boosting safe-haven demand—after the US announced a 10% tariff increase on Denmark and several European countries, and hinted that measures would not be rescinded until a “comprehensive acquisition agreement on Greenland” is completed, further intensifying market risk aversion.

Derivatives Build Illusory Gains, Liquidity Crisis Emerges

Chain analysis firm Glassnode’s weekly report points out that Bitcoin’s previous rally toward $96,000 was fundamentally driven by “mechanical” capital flows in the derivatives market, dominated by forced liquidations triggered by short squeezes, rather than sustained buying support from the spot market. This means the foundation of this rebound was quite fragile from the start.

Glassnode further warns that liquidity in the futures market remains relatively thin. Once the momentum for forced buying diminishes, the price could reverse sharply. The firm also highlights a key resistance zone—an “accumulation area” of long-term holders near the cycle high—this zone has repeatedly doused rebound flames recently, becoming an invisible ceiling for upward movement.

Is This a Bear Market Rebound or a New Beginning? Bullish Investors Should Stay Cautious

Another data firm, CryptoQuant, adopts a more cautious stance. It believes that the trend since late November resembles a potential “bear market rebound” rather than the start of a new bullish cycle. Their analysis emphasizes that Bitcoin is still below the 365-day moving average (around $101,000), which has traditionally been viewed as the market’s bullish-bearish dividing line.

CryptoQuant points out that although demand has slightly improved, the overall structure has not undergone substantial change—spot demand continues to decline, and the net inflow of funds into US Bitcoin spot ETFs remains weak. Bullish momentum has yet to return to a proper level.

Bottoming Signals Emerge, Market Awaits Spot Demand to Rescue

However, there are some bright spots. Glassnode observes that compared to the end of the year, the speed of long-term holders’ capitulation has significantly slowed, which is often seen as a sign of stabilizing market sentiment. Meanwhile, spot funds on major exchanges like Binance have shifted to a buyer-dominated trend, and selling pressure on Coinbase is easing. These details suggest the market is in the process of bottoming out and stabilizing.

Options market performance also reflects this delicate balance. Although implied volatility remains low, long-term contracts still contain downside protection components, indicating investor doubts about whether the bullish trend can continue. The market remains on edge.

Both analysis firms agree: before sustained spot demand truly returns, Bitcoin’s leverage ratio and liquidity changes will be highly sensitive. Bullish investors need to stay vigilant to potential chain risks caused by market volatility.