Bitcoin News

Story: Bitcoin Dumps $160M in Bloodbath—But a Surprise Bounce Could Be Near

By James Thorp

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Bitcoin [BTC] has taken a sharp hit, plunging below $103,000 in a liquidation-driven correction that rattled traders and triggered over $160 million in long position liquidations…

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This deep flush has left the crypto community questioning whether Bitcoin’s price collapse is a sign of broader weakness or simply a much-needed reset of speculative leverage.

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The current downtrend was ignited by a violent unwinding of highly leveraged positions, most notably on Binance.

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These types of liquidation cascades often coincide with local bottoms, especially when they occur alongside a reduction in leveraged exposure and a spike in spot buying interest.

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Supporting the case for a potential bottom, Bitcoin’s 7-day Realized Cap has dropped to $33.48 billion, while the 1-day version plunged to just $1.

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Instead of signaling widespread bearishness, this pattern is consistent with deleveraging—a scenario in which short-term speculative behavior is flushed out, creating a more…

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Further reinforcing this, the Realized Cap HODL Waves for short-term holders (1-7 day range) fell sharply, from over 8% to around 3.6%.

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In contrast to short-term capitulation, long-term metrics are flashing a different signal. Bitcoin’s Stock-to-Flow (S2F) ratio has spiked to 335, the highest value recorded this…

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A rising S2F ratio, when paired with signs of seller exhaustion, often precedes upward price movement—especially when demand begins to return.

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Perhaps the most intriguing development is the shift in Stablecoin Exchange Ratio, which now sits at 5.45, with a daily drop of -1.23%.

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A lower stablecoin ratio suggests more funds are sitting in stablecoins rather than already deployed into volatile assets.

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In other words, capital hasn’t left the market—it’s just waiting for the right moment.

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At the time of writing, Bitcoin is trading just above $103,500, holding the $102,000 support level after multiple retests. However, it remains below the 0.

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Momentum indicators remain neutral-to-bearish, with both the 9-day and 21-day moving averages yet to flip bullish. To regain upward momentum, BTC would need to clear the 0.

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Without that move, any rebound risks being short-lived.

The Currency Analytics

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