BTC hovered around $105,000 on Sunday, but a wave of selling pressure emerged after 2 AM this morning (27th), with the lowest point plummeting to $100,853, a drop of over 4.1%. As of the time of writing, it is temporarily reported at $101,128, with a drop of over 3.3% in the past 24 hours.
ETH also plummeted from $3,342 to $3,188 in the early morning today, a drop of up to 4.6%, and is currently temporarily reported at $3,208, down over 3.7% in the past 24 hours.
Over $450 million in liquidations in the past 24 hours
After the sharp drop in BTC in the early morning on Monday, according to data from Coinglass data, over the past 24 hours, the total amount of cryptocurrency liquidations across the network reached $521 million, of which long positions accounted for $474 million, and short positions accounted for over $47 million, with more than 188,000 people being liquidated.
Where is the key short-term support level for BTC?
Since BTC rebounded earlier at $101,156, if it fails to defend this level, it may further decline to the $97,000 level.
CryptoQuant writer Yonsei Den wrote an article yesterday analyzing that $89,900 is the key medium-term support level.
Analysis of the realized price of STH (short-term holders) shows that the weighted average price of short-term holders holding BTC for 1 week to 6 months is $89,900, which is the key medium-term support level.
Since the trading price of BTC is above $100,000, most short-term holders are still profitable, reducing the likelihood of significant selling pressure.
He further explained that although holders of 3 to 6 months are currently in a loss, this group's share of realized market value is only 9.4%, minimizing the potential impact on the broader market. This suggests that even in the case of a short-term correction, $89,900 could be a stable support level.
As volatility continues to compress, the $89,900 level is becoming increasingly critical. Any significant price movements from here are worth close attention, especially given the importance of this level as a technical and on-chain support area.
Analysis: Large capital is frantically buying BTC, market polarization intensifies
It is worth noting that trader HODL15Capital shared a chart last night and analyzed that the BTC market has shown a clear trend of capital polarization over the past year or more.
Small investors continue to net sell BTC, while large capital players like ETFs and MicroStrategy have been the main net buyers in the market, not only taking up 100% of all BTC sold, but also buying all newly mined BTC.
This trend may indicate that although the BTC market is divergent, large institutions remain highly confident in the long-term value of BTC and will continue to buy the dips, which will provide long-term support for BTC, but the capital structure is different from before. The situation of small investors selling and large investors buying up is expected to significantly intensify the concentration of market capital towards large players like institutions.
