A massive Bitcoin long squeeze on Binance led to the liquidation of over $70 million in leveraged positions, triggering a significant price drop but also signaling a potential market shift. Data from on-chain analyst Amr Taha at CryptoQuant reveals the extreme force behind this liquidation, as over 112,000 long contracts on Binance were forced to close due to the price falling too far below key levels. The result was a cascade effect that accelerated the price decline.
The resulting market void offers an interesting signal: open interest immediately plummeted following the wave of liquidations, indicating that the market has now cleared out overly speculative positions. This aligns with data from Binance showing cumulative net taker volume falling to minus $1 billion. This suggests a dominance in selling power without significant resistance from buyers.
Meanwhile, Bitcoin miners are also playing a role in this recent price movement. Over 5,066 BTC—worth over $565 million—were moved from mining wallets to off-chain accounts within the past 24 hours, marking the largest daily outflow in the past eight months. This significant shift coincides with Bitcoin’s recent price drop.
The combination of this large withdrawal and clearing out overleveraged positions suggests a more stable market structure, leading some analysts to suggest that it could set the stage for a potential rebound.
While retail investors are experiencing heightened volatility in this phase, institutional players like miners and large wallets are also reorganizing their positions. This is creating an opportunity for Bitcoin’s price to stabilize before potentially rallying towards key levels.