The cryptocurrency market was hit by a wave of forced liquidations on Tuesday as Bitcoin (BTC) tumbled below $104,000, wiping out more than $1.2 billion in leveraged positions and shaking trader confidence.
The decline marked a 17% retreat from BTC’s record high earlier in October, when it briefly surged to $126,000. The sharp drop came as traders unwound risk and futures positions across major exchanges, signaling a shift toward caution after weeks of volatility.
Leverage Unwinds Across the Market
Data from CoinGlass showed that over $1.2 billion in long positions were wiped out in just 24 hours, with Bitcoin leading at $377 million in liquidations. Ethereum (ETH) followed closely, accounting for another $316 million.
Analysts noted that the rapid flush-out of long positions could hint at short-term capitulation, potentially setting up a temporary bottom – though market sentiment remains fragile.
Traders Eye $100K as Key Support
Market participants now see $100,000 as the next critical level for Bitcoin to defend. Popular trader Jelle said BTC must reclaim the $105,000–$107,000 zone to avoid slipping into a deeper correction.
Another trader, AlphaBTC, warned that a close below $105,300 could open the door to a full retracement toward the six-figure threshold.
Despite the steep drop, many expect bulls to defend $100K aggressively – a zone widely viewed as the final stronghold before momentum shifts into a longer-term downtrend.
For now, the market remains on edge as traders watch whether Bitcoin can stabilize or whether the latest washout will mark the beginning of a broader correction.
