Will The Bitcoin (BTC) Bear’s Happiness Be Short-Lived?

Key Highlights:

• Over $982M liquidated in 24 hours, mostly from long positions near major support zones.
• Coinbase Premium Index flips negative, signaling bearish U.S. institutional sentiment.
• Key technical zones between $97K and $100K offer potential rebound opportunities for BTC.

Long positions have been shaken, and Bitcoin (BTC) has dropped sharply to near $100K. This triggered nearly $1 Billion in liquidations.

Rising political tensions and economic uncertainty in the U.S. are creating instability. Institutional investors are growing increasingly cautious amid these developments.

Key technical zones between $97K and $100K may provide a short-term bounce while bearish sentiment is still in control. If support holds and buying returns, on-chain data and liquidation levels suggest bears may soon lose control.

Liquidation Wave Hits Bitcoin as Longs Get Wiped Out

BTC tumbled to almost $100,000 as a big wave of liquidations cleared $982.6 million in the past 24 hours. Long positions accounted for nearly $878.7 Million in losses, while shorts amounted to $103.8 Million.

A massive $10 Million liquidation order on BitMEX highlighted the market’s high leverage. This was one of the largest single liquidations ever recorded on the platform.

There was an aggressive drop after rejection near $107,000, which had previously functioned as a major liquidation cluster. The same was shown in the aggregated liquidation heatmap.

Bitcoin broke below key support at $102,000 and quickly tested the 0.618 Fibonacci level at $100,000. It has historically been a key demand zone.

BTC may bounce or continue dropping toward $97,000 and $93,000. This aligns with unfilled fair value gaps and short-term holder realised prices.

Panic and forced selling also appear in on-chain indicators, with 225,000 traders being liquidated in a single day. Liquidation data shows more losses for long positions compared to shorts. If buyers step in, a short squeeze could be triggered.

Also, technical analysis showed a reclaim of $104,500 could be bullish for the market structure. At the same time, a loss of $97,000 could hasten further downside.

Institutional Sentiment Turns Bearish Following Political Fallout

The Coinbase Premium Index went negative. This indicated that U.S.-based institutions and whales are getting out of spot purchases. The shift came after the increased political tensions between U.S. President Donald Trump and Tesla CEO Elon Musk.

The feud over the ‘One Big Beautiful Bill Act’ made an already volatile economic environment even more uncertain. However, the act was criticized for raising inflation risk and economic instability. It is projected to add $2.4 Trillion to the national deficit,

Trump accused Musk of reacting emotionally to electric vehicle credit cuts. On the other hand, Musk warned of recession risks tied to government overspending and tariffs. This bearish sentiment spike resulted from this exchange, which led to further risk-off behaviour.

Macroeconomic conditions have worsened due to weak job data and growing recession fears. This is increasing pressure on high-risk assets like BTC. Levels of media coverage on fiscal uncertainty are high, and the Economic Policy Uncertainty Index remains elevated.

Historically, such spikes in uncertainty have sometimes coincided with bullish trends in traditional markets. However, Bitcoin is proving to be short-term sensitive.

Technical Setup Points to Critical Zones for BTC Reversal

BTC is in a key decision area on technical charts between $97,000 and $100,000. There, bulls have come in before. These are significant Fibonacci retracement zones and fair value gaps, and if demand returns, they are likely bounce zones.

A major bullish order block lines up at the 0.786 Fib near $97,000. This could be the final defense before $93,000. CryptoPatel’s recent chart shows how important it is to reclaim $104,500 to reverse the current bearish structure.

The failed hold of the 0.5 Fib at $102,236 was weak, but a quick recovery could reignite bullish interest. BTC short liquidations above $104K could drive a potential price squeeze higher. Meanwhile, bears remain active in the $107K–$111K range, influencing market movements.

Bears have momentum, but liquidation data is heavily tilted towards long-side capitulation. Such setups have historically preceded relief rallies as sellers are exhausted. Consequently, bulls can flip short-term sentiment in their favour if they hold $100K and reclaim resistance quickly.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.