Bitcoin Crashes Below $113K, $100M in Longs Liquidated

On September 24, Bitcoin ($BTC) went through a notable sell-off in the long positions amid the latest price crash. In this respect, the long $BTC positions have seen a massive liquidation of $110M amid the price slump below the $113,000 mark. As per the data from Glassnode, a prominent blockchain analytics platform, the massive liquidation in long positions has raised significant concerns. Additionally, the liquidation heatmap points out vulnerable leverage clusters, indicating the vulnerability of the bullish sentiment.

$BTC Futures Traders Incur Huge Losses

The liquidation of up to $100M amid Bitcoin’s ($BTC) plunge below $113K signifies the risks related to overleveraged futures trading at a time when the crypto market is witnessing notable volatility. The Bitcoin heatmap presents the formation of liquidation clusters within the futures market. Particularly, on the 24th of September, massive liquidation activity took place within the $113K-$114K range. The respective ones had reportedly accumulated noteworthy leverage, becoming the key targets for striking cascading liquidations in the case of a price breach around crucial thresholds.

Price Plunge Below $113K Triggers Volatility

According to Glassnode , the dramatic price collapse of Bitcoin ($BTC) below the $113K spot has led to wide-scale liquidations in the long positions. The event indicates the amplification of downside volatility driven by clustered leverage. As a result of this, the slight dips turn into liquidation-led crashes. Keeping this significant volatility in view, the traders are advised to be careful until the market stabilizes.