The post Bitcoin Displays Resilience Above Key Price Levels Amid $359 Million Long Liquidation Event appeared on BitcoinEthereumNews.com.

Bitcoin demonstrates remarkable resilience, maintaining its standing above crucial support levels, even after a startling $359 million long liquidation event. Despite a tumultuous market environment, Bitcoin’s bounce back to the $86,000 range suggests underlying strength from spot market participants, indicating potential future stability. According to data from CryptoQuant, “The substantial long liquidation was a necessary step to correct overheated derivatives positions,” highlighting the market’s need for healthy fluctuations. Bitcoin shows resilience amid a $359 million long liquidation event, maintaining support above key price levels, indicating potential market stability. Massive long liquidation but no breakdown According to CryptoQuant data, the market recently witnessed a large-scale long squeeze, with nearly $360 million in long positions flushed out in a single hour. This adjustment demonstrates the volatility that often accompanies significant market activities. Interestingly, this was not accompanied by a sharp downward price spiral. Instead, BTC bounced back quickly and traded at around $86,000, indicating strong buyer support and a lack of panic selling. Source: CryptoQuant This recovery indicates that, despite over-leveraged traders facing losses, spot market participants remain steadfast. The liquidation event appears to have corrected overheated derivatives positions, potentially paving the way for more sustainable upward movements. Bitcoin price holds above short-term realized price Another encouraging signal comes from the Realized Price – UTXO Age Bands chart. At the time of writing, BTC was above the short-term realized price for the 1-day to 1-week cohort at $86,000 and the 1-week to 1-month cohort at $84,000. These levels often act as support zones for short-term holders. Source: CryptoQuant As long as BTC maintains its position above these price bands, it implies that strong hands are stepping in, validating buyer conviction. However, a breakdown below these levels could signal a shift in sentiment and trigger a wave of short-term profit-taking. Bitcoin momentum remains…

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Filed under: News - @ March 28, 2025 12:25 pm