MAC_D
BTC Massive Long Positon Liquidation, At a Crossroads of Rise or Fall
Bitcoin is experiencing a sharp decline as it breaks below the key support level of $90,000. The reasons for this drop are both internal and external: internally, the Ethereum hacking incident has shaken the crypto market, while externally, the Trump administration's tariff policies and the resurgence of inflation have led to a decline in risk assets. As a result, Bitcoin has broken through the critical support level of $90,000, with a price retracement currently underway, placing it at a crucial crossroads that will determine whether it rises or falls. There are two main reasons to expect a rebound at the current price level. First, a massive liquidation of long positions has occurred. Today's liquidation marks the highest since November, with $245 million worth of long positions being liquidated. Such large-scale liquidations tend to thin out order book depth, which can lead to price rebounds even with small volumes. Second, the average entry price of whale investors holding Bitcoin for less than six months is $89,600. This average price serves as a psychological support level, and as long as these whales refrain from further selling, there is a possibility of holding this level and rebounding. However, given the unfavorable internal and external conditions surrounding the crypto market, the outlook is not entirely optimistic. If additional downward pressure causes the support level to break further, there is a high likelihood of a sharp decline. To manage risks effectively, it is advisable to hedge with short positions in futures or sell off some holdings for proactive risk management.