Bitcoin Plunges to $108K, $477M Longs Liquidate
Bitcoin fell from a recent high of $117k to a low of $108,717 after hitting resistance. As of now, BTC trades around $110,197, down 2.04% in 24 hours. Elevated funding rates on Binance (0.005–0.008) indicated persistent long leverage despite price decline. Continued high funding rates raised the risk of cascading long squeezes, triggering $477.5M in long liquidations (4,300 BTC) and intensifying selling pressure. Meanwhile, spot netflow data showed consistent exchange inflows from August 17–25, signaling aggressive spot selling. The derivatives market’s taker buy-sell ratio rose from 0.89 to 0.96, suggesting buyers are cautiously stepping in. However, ongoing long liquidations and spot selling could push Bitcoin toward $107k. Sustained recovery will depend on fresh spot demand to counter derivative-driven momentum.
Bearish
We categorize this news as bearish due to several factors. First, sustained high funding rates amid a price decline mirror past events—in May 2021, similar elevated rates led to cascading long liquidations and deeper corrections. The recent $477M long wipeout confirms that leveraged positions are vulnerable. Second, persistent spot net inflows indicate aggressive selling by spot traders, amplifying downward pressure. Historically, when derivative optimism outpaces spot demand, prices have retreated—seen in the Q4 2021 correction. In the short term, further long squeezes could drive Bitcoin back toward key support at $107k. In the longer term, a trend reversal hinges on renewed spot buying to absorb selling and balance funding rates. Until then, the market may remain under bearish influence.