Bitcoin Crash Analysis: The Breakdown of the $90K Support and the $520M Liquidation Wave

BTC Market Review: Price Falls Below Important Support

Recently, the price of Bitcoin has significantly fallen amidst a tug-of-war between bulls and bears, breaking through the market’s key support level of $90,000. This support level has long been considered a critical psychological and technical support area. Once breached, market sentiment quickly shifts to panic, leading to further sell-offs.

According to the latest market analysis, Bitcoin prices have fluctuated sharply in a short period, with the overall market value evaporating nearly $170 billion within 24 hours, making it one of the most turbulent phases in the recent market.

Get Liquidated trigger mechanism and market fluctuation effect

The price drop triggered a Get Liquidated event of over $520M, with long positions getting liquidated making up a large portion, indicating that most traders in the market had previously bet on an upward direction.

Get Liquidated not only exacerbates the price fall, but may also trigger a chain reaction: a decline in systemic risk appetite, liquidity shortages, and even prompt some high-leverage funds to quickly exit the crypto market. Such a vicious cycle is particularly evident in highly volatile market conditions.

How to interpret on-chain data: Is a bear market approaching?

On-chain data shows that the Bitcoin Bull Score has significantly declined, reflecting a sharp contraction in market bullish sentiment. At the same time, realized losses have not yet reached historical lows, which means there may still be room for further declines.

It is worth noting that bearish positions are also relatively concentrated in the options market, which indirectly indicates that traders generally expect future prices to continue to be under pressure.

The impact of global macro factors on crypto assets

The Fed’s policy direction and global macroeconomic pressures have had a significant impact on the crypto market. Risk assets (including Bitcoin) often face selling pressure during periods of increased macro uncertainty. This has been particularly evident in the recent market performance during extreme conditions.

In addition, the rise in risk-averse sentiment may lead capital to enter more traditional safe-haven markets, thereby reducing allocations to high-risk crypto assets.

Risk Assessment of the Fall and Possible Future Trends

From a technical perspective, if Bitcoin cannot hold the support around $90,000, it may test lower key levels below, such as $87,000 or even lower. However, if the price rebounds and re-establishes itself above important resistance, it may form a range-bound rebound market.

Investors should closely monitor changes in trading volume and on-chain indicators to determine whether the bear market has truly taken shape or if it is a short-term correction.

Strategies and Recommendations for Investors

In the current high volatility environment, it is recommended:

• Control leverage ratio to avoid excessive risk exposure.
• Pay attention to on-chain signals, such as Bull/Bear Score and unrealized loss indicators.
• For long-term holders, it is more prudent to accumulate in batches during dips rather than blindly trying to catch the bottom.

Conclusion: Rational analysis is the core of investment.

The Bitcoin market is highly volatile and easily influenced by macro news. By combining on-chain data, market sentiment, and fundamental analysis, investors can better understand market trends and formulate reasonable strategies.