Bitcoin struggles near $90,000 as leveraged buyers face mounting pressure from a wave of forced liquidations that has reached levels not seen in years. Data shows long positions dominating the liquidation landscape, with sellers maintaining control and preventing any sustained recovery attempts.
What Happened: Long Liquidations
Bitcoin continues to trade beneath the $90,000 threshold following days of sustained selling pressure and aggressive liquidations of leveraged long positions.
Data shared by Axel Adler reveals the liquidation dominance oscillator now registers 32%, marking one of the highest readings recorded in the past three years.
This metric measures the ratio between long and short liquidations across derivatives markets, with positive values indicating long positions absorbing the majority of losses.
November saw three distinct liquidation waves, each exceeding $400 million and aligning with sharp declines in Bitcoin's price.
The most recent flush totaled $221 million and occurred as BTC attempted a short-term recovery, immediately reversing gains and pushing the asset back toward the $86,000 region. Each liquidation spike has amplified downside momentum rather than stabilizing price action, creating repeated cycles of forced selling across futures platforms.
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Why It Matters: Market Structure
Bitcoin's weekly chart shows the asset testing the 100-period simple moving average after falling from $115,000 to the current $86,000-$88,000 range.
This moving average has functioned as structural support during previous cycles, and the current test will likely determine whether the broader uptrend remains intact. A brief dip to nearly $84,000 formed a lower wick before buyers stepped in, though the rebound remains shallow with the 50 SMA continuing its downward slope.
Volume patterns reveal selling spikes dominating recent weeks, suggesting a mix of forced liquidations and fear-driven exits rather than orderly profit-taking.
Bulls need to reclaim $95,000 on a weekly closing basis to regain control of short- and mid-term momentum. Should the 100 SMA fail to hold, the next major support zone sits near $70,000-$72,000, corresponding with previous consolidation areas and the long-term 200 SMA.
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