Bitcoin faced significant volatility as it hovered around $70,000, triggering over $250 million in combined long and short liquidations. Analysis indicates bears are attempting to regain control, with the price setting up for a retest of local support near $68,500. Meanwhile, on-chain data reveals a weakening ability to absorb selling pressure due to a lack of fresh demand growth.
Bitcoin eyed multiday lows approaching $68,500 as analysis warned bears were trying to regain control of the local trend. Data from TradingView showed the cryptocurrency recording 2.3% daily losses.
The relatively calm price action still sparked high liquidations on exchanges, exceeding $250 million across crypto markets according to CoinGlass. CryptoReviewing noted the price movement liquidated roughly $130 million in shorts before dropping to liquidate another $150 million in longs.
“Now, above at $72,000 – $74,000 we still have large liquidity waiting to be taken,” CryptoReviewing wrote in a post on X. The analysis concluded that “Bears are attempting to regain control.”
Trading resource Material Indicators stated that “Things are setting up for $BTC to grind its way into a retest of local support.” The firm noted that purple whales continued selling over the past 24 hours based on its FireCharts data.
On-chain analytics platform CryptoQuant highlighted a concerning lack of demand growth to match coins being spent. Contributor CryptoZeno explained that demand has slipped into negative territory in a Quicktake blog post.
“Demand has slipped into negative territory, signaling that the market’s ability to absorb distributed supply is weakening,” CryptoZeno stated. This divergence has historically marked transition phases where bullish momentum slowed.
