Bitcoin Drops Below $90K, Traders Hit By $600M Liquidations

Bitcoin price dropped below the $90,000 psychological support while gold continues to rally at record highs. With that, more than $600 million were liquidated from crypto traders in the last 24 hours, marking the second day of significant losses.

On the price chart below, we can see Bitcoin BTC $89 652 24h volatility: 3.5% Market cap: $1.79 T Vol. 24h: $52.02 B trading at $90,180 against the US dollar, just below the 50-day exponential moving average (1D50EMA), which often indicates a level of high trading activity, either as support or resistance in a broader trend. Intraday, the leading cryptocurrency traded as low as $89,825 by the time of this writing, with further downside potential.

BTC now heads down to another relevant level between $80,500 and $84,500, and some analysts like CrypNuevo are looking at those support levels with interest for a potential liquidity run and rebound to the upside, as analyzed in a YouTube video published earlier today on Jan. 20.

$600M Liquidations in 24 Hours

Moreover, today’s dip caused another series of liquidations, totaling more than $600 million in the last 24 hours—according to CoinGlass data—with Ethereum ETH $2 996 24h volatility: 6.6% Market cap: $362.11 B Vol. 24h: $30.45 B leading the charge with $250 million, followed by Bitcoin’s $187 million in liquidations. This is the second day in a row of significant liquidations, still below January 19’s nearly $900 million, as Coinspeaker reported.

Overall, nearly 150,000 cryptocurrency traders were affected by these events, with the single largest liquidation being of $6.80 million on Hyperliquid, with the ETH/USD pair. Interestingly, out of the $250 million liquidations ETH suffered, $234 million were from long positions. The same pattern repeats in the global long liquidations, summing up to $547 million of the $600 million total.

The market is currently reacting to macroeconomic uncertainties and capital is fleeing from risk-on assets like BTC and ETH, moving to risk-off assets like gold and silver, which continue to rally at all-time highs.

Nevertheless, Michael Saylor continues to be a contrarian signal, buying local tops and foreshadowing further Bitcoin dips. Strategy just acquired 22,305 new BTC for $2.13 billion, averaging $95,500 per coin.

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