The cryptocurrency market experienced a significant wave of liquidations, totaling $550 million in long positions over a 24-hour period. This market movement occurred as Bitcoin dropped below the $84,000 threshold on Wednesday. TradingView data indicates that the price of Bitcoin fell by 2.3% within a two-hour window before stabilizing near the $84,000 mark.
On-chain analysis from Lookonchain revealed that four wallets utilized $550 million in USDC to open short positions on 148.49 BTC with 40x leverage on the Hyperliquid exchange prior to the price decline. Following the liquidation of long positions, open interest across 21 exchanges monitored by CoinGlass rose from $54.2 billion to $55.3 billion within a six-hour timeframe.
Despite the daily decline of 1.8%, Bitcoin maintained support at its 21-day simple moving average near $83,850. Analysts note that the $82,500 level remains a critical point for the broader uptrend, as it forms part of an inverse head-and-shoulders pattern on the weekly chart. A daily close above $86,700 is currently viewed as necessary to sustain a bullish market structure.
