Bitcoin's price drop triggers $132M in liquidations

On Sunday, Bitcoin (CRYPTO:BTC) experienced a significant price drop, reaching an intraday low of $101,957 after peaking at $105,424 earlier in the day.

This decline triggered the liquidation of over $128 million in long positions across crypto derivatives markets within just four hours, contributing to a total of $371.94 million in liquidations across all cryptocurrencies.

As of 8 p.m. ET, Bitcoin's market capitalisation stood at approximately $2.04 trillion, reflecting a 1.7% decrease against the U.S. dollar, with individual coins trading at around $102,052.

Despite this downturn, the overall cryptocurrency market maintained a valuation of $3.5 trillion, although it suffered a 2.56% decline over the past 24 hours.

The trading volume for Bitcoin reached $21.80 billion during this period, indicating increased activity driven by late-afternoon selling pressure.

While liquidations highlighted investor caution, open interest in Bitcoin futures markets remains high, exceeding $64 billion.

The Crypto Fear and Greed Index indicates a sentiment of "greed" at 71, suggesting that despite recent volatility, there is still bullish optimism among traders.

Market analysts are closely monitoring the situation as Bitcoin navigates a complex landscape of resistance and support levels, with key resistance identified between $105,000 and $106,000.

The fluctuations in Bitcoin's price underscore the ongoing tension between bullish sentiment and market uncertainty as January draws to a close.

Experts warn that while current trading volumes and open interest signal confidence, the potential for further liquidations remains if prices continue to decline.

At the time of reporting, the Bitcoin (BTC) price was $100,382.