Bitcoin’s recent plunge saw over $160 million in long liquidations and a -$100M Taker Volume, driven by speculative leverage getting flushed out of the market. The cryptocurrency’s Stock-to-Flow ratio remained low, signaling that buyer firepower was largely sidelined.
The drop below $103K triggered a $160 million long liquidation cascade on Binance, followed by intense selling pressure. However, the contraction in realized profits and fading market participation suggests potential deleveraging rather than pure bearishness.
Bitcoin’s short-term holder activity plummeted, with Realized Cap HODL Waves dropping from above 8% to nearly 3.6%. This indicates that short-term speculation may be getting flushed out of the system. On the other hand, the Stock-to-Flow ratio surged to its highest level this cycle, indicating extreme supply scarcity.
A declining exchange stablecoin ratio, now at 5.45 with a -1.23% daily change, shows stronger potential buying power. Liquidity hasn’t fled the market; it’s on standby if sentiment stabilizes. The cryptocurrency traded below $103K, holding key support levels but still struggling to break above them.
While the structure looks shaky, Bitcoin holds a chance to bounce if accumulation strengthens near the $110K-$112K range. The odds are tilting toward a stabilization phase that may support gradual recovery, as speculative leverage is cleared and buying power becomes more available.
Source: https://ambcrypto.com/bitcoins-road-ahead-after-binances-brutal-160-mln-bloodbath