The post Bitcoin Enters High-Risk Zone After Mass Long Liquidations appeared on BitcoinEthereumNews.com.

Bitcoin Analysis Bitcoin’s latest pullback is doing more than just shaking price levels – it is actively flushing out market positioning. According to data highlighted by crypto analyst Joao Wedson, a significant share of long positions opened over the past month has already been liquidated, underscoring how crowded the bullish trade had become. Key Takeaways A large portion of recent Bitcoin long positions has been liquidated, highlighting crowded bullish positioning. The loss of the 89.2k level and a rising Risk Index are reinforcing near-term bearish sentiment. The 84.5k zone is now critical – holding it could stabilize price, while a breakdown may open the door to a deeper move toward the mid-70k area. This wave of liquidations suggests that most traders were leaning heavily toward further upside. As price slipped, that imbalance created ideal conditions for exchanges and larger players to hunt liquidity, pushing Bitcoin lower to force weak hands out of their positions. Liquidation pressure reshapes market structure Heatmap data tracking aggregated liquidation levels over the past 30 days shows dense clusters of long exposure being cleared as Bitcoin drifted lower. Rather than a single capitulation event, the move resembles a slow bleed, with leverage steadily unwinding as price fails to reclaim prior highs. This behavior fits a familiar pattern in crypto markets. When consensus becomes too one-sided, price often moves in the opposite direction, targeting areas where stop losses and liquidation levels are stacked. The result is a market that looks technically weak, even if broader conviction remains intact. Risk Index climbs as key support breaks Recent price action has reinforced a bearish short-term outlook. Bitcoin lost the 89.2k support zone, a level that had acted as a pivot throughout January. At the same time, the Bitcoin Risk Index continued to rise, signaling a higher-risk environment and worsening…

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Filed under: News - @ January 27, 2026 12:30 pm