Long Liquidation Spike Signals Potential Shift in Bitcoin Sentiment

Bitcoin's recent price stability contrasts with significant activity in the futures market. Analyst Axel Adler Jr. from CryptoQuant noted a rise in long liquidation dominance, which increased from 0% to over 10% within a week, indicating stress among bullish traders without a corresponding price drop.

Key Insights

Long liquidations reached 2,200 BTC, the highest in a week.
The lack of a sharp price crash suggests strong buyer support.
Spikes in long liquidation dominance have historically preceded bullish reversals.
A potential increase of 5-7% in this metric may lead to a shift favoring bulls.

Additionally, data from Santiment reveals a divergence between large and retail holders. Over ten days, wallets holding more than 10 BTC rose by 231, while smaller wallets decreased by 37,465. This trend indicates accumulation by larger investors amid retail exits, which is typically bullish for Bitcoin.

Market Overview

Bitcoin's price is currently around $102,670, down 2.6% in the last 24 hours.
Recent U.S. military actions in Iran contributed to market risk aversion, causing a 3.2% drop in Bitcoin.
This decline mirrors historical responses during similar geopolitical tensions.

Despite short-term volatility, ongoing accumulation by larger wallets could signal potential upward movement if retail investors re-enter the market.