Bitcoin wobbles at $110K as trader says $20B liquidation rout not 'bottom'

Key points:

• Bitcoin and altcoins reel from the biggest liquidation event in crypto history.

• BTC price action fails to stage a rebound from multi-week lows, with $100,000 getting closer.

• Crypto is beginning a “cleanse” of bull-market euphoria, a trader says.

Bitcoin pressured $110,000 support on Saturday as the dust settled on a record $20 billion liquidation event.

Trader sees start of “crypto cleanse”

Data from Cointelegraph Markets Pro and TradingView showed struggling to rebound after falling to three-week lows on Bitstamp.

Fresh market nerves over the US-China trade war punished risk assets across the board. The S&P 500 closed down 2.7% Friday, while gold emerged as a rare beneficiary, heading back above $4,000 per ounce.

Amid the crypto carnage, Bitcoin’s relative strength index (RSI) became deeply “oversold.” Four-hour RSI was at levels not seen since the start of the trade war debacle in February.

“Seeing a lot of short positioning rolling off here aggregately,” trader Skew wrote in ongoing coverage on X.

Skew added that even major crypto exchanges had struggled during the downside volatility.

Fellow trader Roman, who was cautious about the strength of the bull market in recent weeks, predicted that new lows were to come.

“This isn’t the bottom,” he told X followers. 

Liquidations “likely much higher” than $20 billion

Traders betting big on the bull run suffered to an extent never seen in crypto market history.

Data from CoinGlass indicates that 24-hour liquidations reached nearly $20 billion, with long positions comprising the vast majority.

“The actual total is likely much higher — Binance only reports one liquidation order per second,” CoinGlass said on X about the figures.

Exchange order-book liquidity showed a severe imbalance between bids and asks — resistance was stacked around $120,000, while little support was in place to prevent a fresh dive toward the $100,000 mark.

Earlier, Cointelegraph reported on expectations that could revisit the bottom of its local range at $108,000 as part of “ping pong” price action.

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