Bitcoin Slips Below $80,500 as $315M in Crypto Longs Are Liquidated
Bitcoin fell towards $80,500, while Ethereum traded near $2,375, below the $2,400 level. The declines came amid cautious sentiment following losses on US markets and rising oil prices linked to renewed Middle East tensions.
CoinGlass data showed about $315 million in crypto positions liquidated over 24 hours, including roughly $248 million in long positions. Ethereum led token-specific liquidations at about $61.2 million, followed by Bitcoin at $52.4 million. Solana and XRP also fell.
Bitcoin’s daily close was below its 20-day and 50-day moving averages, with bearish MACD readings. Its Bollinger lower band near $79,889 is a key support to watch. Ethereum also remained below its 20-day and 50-day averages, and its RSI of 38.5 indicated weaker momentum. Traders are monitoring the $80,000 Bitcoin level, Middle East developments, Federal Reserve policy and upcoming economic data. The Fear and Greed Index edged up to 51, within neutral territory.
Bearish
The immediate market signals are bearish. Bitcoin and Ethereum are trading below key short-term moving averages, while the roughly $315 million in 24-hour liquidations were heavily concentrated in long positions. Such forced selling can deepen declines in the short term, particularly when traders use leverage and prices approach widely watched levels such as Bitcoin’s $80,000 threshold and Ethereum’s $2,400 mark. The reported weakness in SOL and XRP also points to broad pressure rather than an isolated move.
Similar liquidation-driven sell-offs have often produced sharp intraday volatility: falling prices trigger margin liquidations, which add further selling pressure. However, liquidation totals alone do not establish a sustained trend. Bitcoin’s RSI remains in neutral territory, and the Fear and Greed Index at 51 is also neutral, suggesting sentiment has weakened but has not reached extreme fear. A sustained hold near Bitcoin’s $79,889 lower Bollinger band, or a recovery above short-term moving averages, could reduce downside pressure.
For the short term, traders may remain cautious and watch support levels, funding and open interest, as well as developments in the Middle East and oil prices. Higher energy costs could reinforce inflation concerns and affect expectations for Federal Reserve policy, weighing on risk assets. Over the longer term, the article provides no evidence of a change in crypto fundamentals; market direction will depend on whether support holds and how macroeconomic and geopolitical risks evolve.