On September 4, 2024, Bitcoin (BTC) the world’s biggest cryptocurrency breached its crucial support level of $57,000, making a low of $55,670, according to CoinMarketCap data. However, the BTC price quickly recovered, returning to near the $56,800 level.

$100 Million in Liquidations

This significant price fluctuation in past hours has liquidated over $100 million in longs and shorts positions. The majority of the liquidation came from the long side. According to the on-chain analytic firm CoinGlass, out of $100 million in liquidation, bulls were liquidated for $91.35 million worth of long positions, while short sellers saw 8.57 million in liquidations.

Despite recent market recovery from $55,670 to $56,800, it appears that BTC has entered a phase where short sellers are currently dominating the assets and have the potential to liquidate more long positions.

Bitcoin Technical Analysis and Upcoming Levels

According to the expert technical analysis, BTC has turned extremely bearish, with a high possibility of falling to the $54,000 level. The recent price drop not only breached the crucial support level but also broke a week-long consolidation near the support area, which is a bearish sign.

Since August 8, 2024, this is the first time BTC has fallen below the $56,000 level. Despite this massive price decline and crucial breakdown, technical indicators such as the Relative Strength Index (RSI) and Stochastic remain neutral according to CryptoQuant data.

Key Liquidation Areas

Currently, the major liquidation areas are near $56,270 on the lower side and $57,130 on the upper side, as intraday traders are over-leveraged at these levels, according to CoinGlass’s Bitcoin exchange liquidation map.

If the market sentiment remains bearish and BTC falls to the $56,270 level, nearly $260 million worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to the $57,130 level, approximately $215 million worth of short position will be liquidated.

At press time, BTC is trading near $56,650 and has experienced a price drop of over 5% in the last 24 hours. Meanwhile, its open interest has declined by 4% in the last four hours, indicating significant liquidations due to the recent breakdown of crucial support levels.