On the 21st of January, Bitcoin decided it was time to take a nosedive below $90,000-because why not add a little excitement to the crypto rollercoaster? This dip isn’t just a casual stroll; it’s accompanied by a full-on stampede of forced unwinds across the crypto derivatives market. Talk about a party no one wanted to attend!
In a dramatic twist worthy of a soap opera, Bitcoin plummeted to a thrilling low of $89,162 before settling down for a cozy evening around $89,368. That’s a solid 1.9% drop, if you’re keeping score at home. Meanwhile, the Relative Strength Index [RSI] has taken a wild turn down to -33.7, which typically signals that things are looking a bit shaky after an avalanche of selling pressure. Who knew numbers could be so dramatic?
A leverage flush dominated by long liquidations
Liquidation data is in, and guess what? The sell-off was primarily driven by long positions getting the boot. According to CoinGlass (which sounds like a trendy coffee shop), total liquidations hit the astounding figure of $708.88 million over the past 24 hours. And just to spice things up, $648.78 million of that was from longs, while shorts contributed a meager $60.09 million. A classic case of “longs, you should have known better!”
In just the last 12 hours, liquidations totaled $466.40 million, once again heavily favoring longs at [$422.68 million], with the shorts merely covering their faces in embarrassment at [$43.72 million]. CoinGlass also reported that 166,432 traders found themselves liquidated during this tumultuous 24-hour window. Ouch!
This kind of imbalance usually indicates a market that was poised for some sort of continuation or bounce, only to be blindsided as spot prices spiraled downwards, triggering a cascade of stop-outs. Think of it as a game of musical chairs where everyone forgot to sit down.
Bitcoin leads the downturn as traders watch key levels
With Bitcoin slipping beneath the $90k mark, all eyes will be glued to whether it can swiftly reclaim that psychological boundary or if sellers will mount a valiant defense against any rebound attempts. It’s like watching a high-stakes chess match, but with more panic and fewer pawns.
From a market structure perspective, combining a sub-$90k print with RSI hovering in the low-30s suggests we’ve entered a delicate phase. Bounces might happen, but they often resemble a toddler on a sugar rush-volatile and prone to emotional outbursts driven by headline news and funding positioning.
Yet, the clearest signal from the data is positioning. The liquidation skew indicates that the market has been aggressively deleveraging. Sometimes, this can ease near-term selling pressure once the forced liquidations begin to taper off, similar to how a crowded elevator feels once a few people get out. You know, much more comfortable!
Final Thoughts
- Bitcoin breaking below $90k coincided with a leverage reset, with roughly $708.9 million liquidated in 24 hours, and longs taking the bulk of the hit. Lesson learned, right?
- With RSI hanging out near -34 on the 12-hour chart, BTC is weakening at support, making those next moves around $90k a crucial indicator of sentiment and positioning. Fingers crossed!
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2026-01-21 00:06