After failing to break resistance around $94,500, Bitcoin price pulled back, dragging the broader crypto market with it.
Altcoins followed Bitcoin’s lead, and most traded sideways through the day.
Total crypto market cap dropped nearly 3% over the past 24 hours before stabilising near the $3.2T mark as investors began locking in gains.
Market sentiment stayed neutral in the meantime, with the crypto fear and greed index at 49 at the time of writing.
With no major catalysts to move markets, investors look undecided and appear to be in wait and see mode, especially after what many would view as a Bitcoin fake-out rally that failed to clear $95,000.
Markets are also watching an array of US economic data due later this week.
Why is Bitcoin price down today?
Bitcoin price opened near an intraday high of $94,140 and drifted lower through the session as repeated failures to reclaim the $94,500 to $95,000 resistance zone encouraged short-term profit taking.
With BTC still up roughly 12% from its December lows near $84,500, many traders appeared inclined to lock in gains rather than press fresh longs ahead of key macro events.
Selling pressure picked up noticeably during Asian trading hours, where traders appeared to initiate a fresh round of sell orders once it became clear that momentum was fading at resistance.
Adding to the downside, the sell-off triggered widespread long liquidations across the derivatives market.
Over the past 24 hours, total crypto market liquidations came in at approximately $449.34 million, with Bitcoin alone accounting for $151.91 million.
Longs made up the overwhelming bulk of these liquidations, $362.24 million, versus only $87.10 million in shorts, suggesting that many traders had bet on a breakout that didn’t materialise.
As price slipped below short-term support levels, forced long liquidations added to selling pressure and amplified the downside move.
Altcoins like Ethereum also contributed to the cascade with over $99 million in total liquidations, while other major names like XRP and DOGE saw $26.8 million and $11.8 million wiped out, respectively.
Momentum on the institutional side has also started to cool, with inflows into US spot Bitcoin ETFs slowing from the strong pace seen at the start of the year.
Without that steady stream of fresh capital to absorb selling pressure, the market has struggled to maintain upward traction, particularly near key resistance levels where conviction remains weak.
Then on the macro side, traders are also bracing for several high-impact data prints out of the US this week.
Key releases include the ADP employment report, JOLTS job openings, and Friday’s nonfarm payrolls, all of which could shape expectations around interest rates and alter risk appetite.
For now, the uncertainty seems to have contributed to the “risk-off” tone, as investors are pulling back exposure across risk assets, including crypto.
At the same tine, geopolitical tensions, such as fresh scrutiny around US policy on Venezuela’s oil exports, have only added to the caution.
Will Bitcoin price go up?
Bitcoin has been repeatedly testing the the $91k floor which has been acting as a major support area throughout the day.
If Bitcoin price fails to hold above this last line of defence before the $90,000 psychological level, it could spook markets even further and invalidate the entire bullish setup that has been built over the past few days.
On the other hand, a recovery back above $92,000, which is the next key support area, could provide a sold ground for attacking the $94,500 ceiling with strong conviction.
When consulting the 24-hour Bitcoin liquidation heatmap, a few key patterns emerge that help shed light on near-term price dynamics in both directions.
On the downside, the chart reveals dense liquidation clusters just above the $91,000 level, confirming it as a critical support zone that Bitcoin has tested multiple times in the last 24 hours.
A breakdown below this threshold could expose the next major band of liquidations forming just above $90,000, a psychologically important round number.
If that level fails to hold, the heatmap suggests a pocket of high leverage positions extending down toward $88,000.
To the upside, the heatmap indicates persistent liquidation leverage stacked near the $94,000 to $95,000 region, the same resistance band where Bitcoin was repeatedly rejected earlier in the session.
The density of liquidation levels in this range suggests that any breakout above $95,000 could trigger a short squeeze, especially if BTC reclaims $94,500 with strong spot volume.
Commenting on the current situation, crypto analyst Byzantine General braced for more volatilty ahead as he pointed out that Bitcoin open interest has been rising rapidly. See below.
$BTC open interest has been rising quickly.
Volatility coming.
Other well-followed traders like Kaleo have also weighed in on the current price action. In a recent post on X, he said he is eyeing a potential pullback toward the $84,500 region before Bitcoin eventually bounces back and climbs above six figures.
$100K+ is a magnet.
At the time of publication, Bitcoin was changing hands at $91,223, with losses of over 3% on the day.
Altcoin prices today
In the past 24 hours, the altcoin market cap initially sharply fell by nearly 5% to $1.36 trillion before recovering and settling at $1.41 trillion at the time of writing.
Ethereum (ETH), the largest altcoin by market cap, seesawed between the $3,200-$3,300 range through the day before stabilizing around $3,180, down 3.3% over the past day.
Other major cryptocurrencies, such as BNB (BNB), Solana (SOL), and Dogecoin (DOGE), saw losses ranging from 2-5% while XRP (XRP) and Cardano (ADA) were hit harder with losses of 7% each.
Even as most of the market traded in the red, a handful of tokens managed to hold their ground.
MemeCore (M) and MYX Finance (MYX) held gains of around 2% to 3%, while Tron (TRX) followed with gains of a little over 1%.
Source: CoinMarketCap
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