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Bitcoin continues to show signs of price consolidation, with its value hovering just below the $87,000 mark. As of today, BTC is trading at approximately $86,990, reflecting a 0.8% decline over the past 24 hours.
Despite the slight dip, the broader picture shows that Bitcoin has stabilized above $85,000 for several consecutive sessions, signaling a pause in the strong upward or downward momentum observed in previous weeks.
While volatility appears subdued, market dynamics remain active behind the scenes. CryptoQuant contributor Amr Taha recently provided insights into Bitcoins latest market structure, highlighting a key development: the liquidation of $359.7 million worth of long positions.
This event has drawn attention to potential shifts in sentiment and important technical levels that may act as support or resistance in the short term.
According to Taha, a long liquidation occurs when traders holding leveraged long positions are forced to close their trades after the price drops below their margin thresholds. When this happens at scale, as seen recently, it reflects a sudden change in sentiment and often forces short-term sell-offs.
However, Taha points out that such events can also set the stage for a potential market rebound, as many overleveraged positions are cleared, giving space for new demand to emerge.
Liquidation event of $359.7M in long positions
If BTC holds above the short-term realized price, it suggests strength in demand. A breakdown below these levels might indicate a potential reversal or correction. By Amr Taha
Full post ??https://t.co/SW9e16kofW pic.twitter.com/0YR9rfreGa
CryptoQuant.com (@cryptoquant_com) March 27, 2025
Complementing this observation is Bitcoins realized price distribution by UTXO age bands. Taha notes that Bitcoins current market price remains above the realized price for UTXOs aged 1 day to 1 week, indicating that recent buyers are holding unrealized profits.
Meanwhile, UTXOs in the 1-week to 1-month range have their realized price near $84,740a level that could act as technical support if Bitcoin dips in the near term. This confluence of short-term holder profitability and support near $84K may serve as an important signal.
If Bitcoin maintains its position above these realized price zones, it suggests continued strength from recent buyers. However, if the price begins to fall below these thresholds, it could point to increased selling pressure or a broader correction phase.
While the liquidation of long positions and UTXO age metrics offer some insight into market sentiment, Taha’s conclusion of a possibility for the price to either fall or continue rising gives more reason to remain cautious.
Featured image created with DALL-E, Chart from TraingView