Bitcoin crashes through $81,000 buy wall as $1 billion crypto liquidation bloodbath unfolds

Market Analysis

Bitcoin's recent attempt to reclaim $87,000 has been repelled, with the largest cryptocurrency trading around $80,744 as of press time. The decline has triggered $1.16 billion in liquidations across the crypto derivatives market, with bullish positions accounting for $1 billion of that total.

Ethereum Leads the Liquidation Rout

Ethereum has suffered the largest liquidation losses among major cryptocurrencies, with approximately $324 million in Ethereum positions liquidated over 24 hours. Ethereum has plunged below $2,500, down 4% over the same period, extending its weekly decline to approximately 9.3%.

Altcoin Market Under Stress

Heavier losses across several altcoins suggest the broader market is under more stress than Bitcoin's percentage decline alone indicates. The development also comes after warnings that leverage across the altcoin market had become increasingly stretched.

Bitcoin's On-Chain Activity

Bitcoin's on-chain activity has also shown signs of stress, with recently acquired holdings increasingly moving toward exchanges. Short-term Bitcoin holders have transferred more than 50,000 BTC to exchanges at the 24-hour daily peak, with more than 29,500 BTC transferred at a loss.

The $81,000 Buy Wall Faces a Crucial Test

The immediate question is whether Bitcoin can find sufficient demand near $81,000 to absorb the rising selling pressure. Glassnode identified a substantial concentration of resting buy orders between $81,000 and $81,250 on Binance's spot order book.