$1.89B in Longs Evaporate as Bitcoin Crashes Under $118K – Is the Worst Over?

Key Points

1. Bitcoin's price fell from $124K to below $118K, with open interest (OI) dropping by 5% and cumulative net taker volume declining sharply by $1.89 billion.

2. The market downturn is attributed to forced closures of overleveraged long positions, evidenced by an $130 million surge in 8-hour net liquidations.

3. Binance’s funding rate compressed to 0.006%, reflecting a heavy long squeeze and accelerating downward momentum as bullish traders exited positions.

4. Bitcoin failed to sustain upward momentum after briefly reaching a new all-time high of $124.5K, with structural weakness offsetting underlying market strength.

5. The lack of follow-through in holding gains makes the market vulnerable to quick reversals, raising the risk that near-term upward moves may be temporary.