Crypto Liquidation Surge as Bitcoin Price Crashes Below $104k

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The crypto market faced intense pressure on Tuesday as Bitcoin tumbled below $104,000, triggering one of the largest liquidation events of the year. More than $1.3 billion in leveraged positions were liquidated within 24 hours, reflecting rising fear among traders as Bitcoin’s correction deepens.

Crypto liquidations Bitcoin Slides 17% From Its Peak

Bitcoin’s drop marks a 17% decline from its all-time high of $126,000, recorded on October 6. The latest fall to around $104,130 came after a failed attempt to hold above $111,000 over the weekend. Traders shifted to a “risk-off” mode, rapidly unwinding leveraged bets as volatility spiked across the market.

Data from CoinGlass revealed that $1.21 billion worth of long positions were liquidated, with Bitcoin alone accounting for $377 million and Ethereum following with $316 million. The single largest liquidation happened on HTX, where a massive $47.8 million BTC-USDT long was closed in one sweep. In total, the market saw $1.36 billion in both long and short liquidations combined. 

ETFs making things Worse…

For the fourth straight day, spot Bitcoin ETFs recorded net outflows, removing $187 million from the market on Nov. 3. Ethereum ETFs also saw $136 million in outflows. Interestingly, Solana ETFs recorded $70 million in inflows, signaling that some traders are rotating toward higher-risk assets despite the overall market downturn.

Market Sentiment Weakens as Futures Interest Falls

The sell-off was accompanied by a sharp decline in Bitcoin’s futures open interest (OI), a key indicator of trader participation. CoinGlass data showed that overall OI dropped 4%, with the CME Bitcoin futures market recording a steeper 9% fall in the last 24 hours.

A fall in open interest often signals reduced leverage and waning confidence. Historically, similar drops in OI have aligned with price dips. For instance, between September 19 and 28, a 10% OI decline came alongside an 8% fall in Bitcoin’s price, suggesting a familiar pattern of weakening momentum now.

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Traders Eye $100K as the Last Major Support

The Crypto Fear & Greed Index dropped to 21, indicating deep caution. BTC dipped under $105,000, and traders are now closely watching the $100,000 level, viewed as Bitcoin’s next strong line of defense. Popular trader Jelle noted on X that Bitcoin must quickly reclaim the $105,000–$107,000 range to avoid a deeper correction. “The next area of support is $100K,” he said.

Another trader, AlphaBTC, warned that a daily close below $105,300 could accelerate losses and trigger a slide under $100,000. Analysts expect bulls to defend the six-figure level strongly, but a break below it could flip Bitcoin’s long-term trend into bearish territory. On the same note, Bitfinex analysts caution that unless ETF inflows return or new institutional demand appears, Bitcoin could “potentially extend toward the $100,000 region or lower.”

For now, the crypto market remains tense, with traders bracing for what could be a crucial test of Bitcoin’s resilience at $100,000.

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