Bitcoin Price Rebounds Above $88K as Liquidations Hit $600M and Gold Draws Capital
The post Bitcoin Price Rebounds Above $88K as Liquidations Hit $600M and Gold Draws Capital appeared on BitcoinEthereumNews.com.
Bitcoin Analysis Bitcoin traded around the $88,000 level on Wednesday, showing modest short-term recovery after a volatile period marked by heavy liquidations and growing macro uncertainty. Bitcoin traded around the $88,000 level on Wednesday, showing modest short-term recovery after a volatile period marked by heavy liquidations and growing macro uncertainty. While price action has steadied, underlying data suggests the market remains fragile as leverage is flushed out and longer-term holders continue to add selling pressure. Key Takeaways Bitcoin is holding near $88,000 after a wave of liquidations cleared excessive leverage Over $600 million in crypto positions were liquidated in the past 24 hours, led by ETH and BTC Macro data shows capital rotating toward gold, signaling a risk-off environment Long-term Bitcoin holders continue to distribute, adding steady supply to the market Over the past 24 hours, total crypto liquidations reached roughly $628 million, according to derivatives heatmap data. Short positions accounted for the majority of the damage, with more than $230 million wiped out as prices rebounded from local lows. Long liquidations were also significant, underscoring how choppy conditions have punished both sides of the trade. Ethereum led the liquidation charts, with nearly $200 million in positions closed out, narrowly edging out Bitcoin, which saw about $180 million in forced liquidations. This divergence highlights how traders had crowded into ETH positions ahead of recent market moves, leaving them vulnerable to sharp swings. Liquidation Pressure Shows Signs of Cooling Short-term liquidation data points to a slowdown in forced selling compared to earlier in the week. In the most recent four-hour window, total liquidations dropped below $100 million, suggesting that excessive leverage has already been reduced. Still, analysts caution that liquidation-driven bounces can be deceptive. With open interest resetting and liquidity thinning, price moves may remain exaggerated in either direction, especially if…
