Bitcoin Long Liquidation Dominance Surges Amidst Price Stability
- Axel Adler of CryptoQuant highlights Bitcoin BTC -1.83% ’s long liquidation spike.
- BTC maintains price stability against seller pressure.
- Potential bearish exhaustion in play with future implications.
Bitcoin’s long liquidation dominance surged significantly from 0% to 10% this week while prices held steady in the $103,000 to $106,000 range.
The surge in Bitcoin’s long liquidation suggests strong buyer support and potential bearish exhaustion, possibly indicating a future bullish turn in market sentiment.
Recent data reflects Bitcoin enduring a rise in long liquidation dominance, with prices not slipping below critical support levels. CryptoQuant’s analyst Axel Adler noted this resilience as a potentially positive signal for future bullish momentum.
“On June 21, long-liquidation dominance surged from 0% to 10% this week, while Bitcoin stayed in the $103,000–$106,000 range—a good signal, as it suggests strong buyer support. If the metric rises further by another 5%–7%, we could see a flush of remaining bears. A future drop in the metric may signal bullish momentum returning to BTC futures.” — Axel Adler, Analyst, CryptoQuant.
The latest shift in long liquidation dominance imposes significant effects on Bitcoin and Ethereum ETH -1.49% , with notable trader disruptions. Despite this, the Bitcoin price showed resilience, not crashing but holding steady, which signals buyer strength.
The financial implications see a forced deleveraging in derivatives rather than direct asset allocations, reflecting risk aversion among traders. No new policy changes were observed, as institutions and governments perceived the move as market-driven.
Insights suggest a potential financial turnaround if the liquidation dominance falls further, potentially marking a bullish shift. Market analysts will watch Bitcoin’s $102,000 level as a key support line, impacting future trading strategies.
