Bitcoin's recent price decline has put it in the spotlight for potential liquidations of over $70 million in long positions if it reaches the critical support price of $54,000.
According to on-chain analyst Ali Martinez, a deeper correction could trigger major liquidations. He noted that if Bitcoin drops to $54,000, more than $70 million in long positions could be forced to close automatically, accelerating downward price movement as leveraged positions are removed from the market.
In addition to these potential liquidations, outflows from spot Exchange-Traded Funds (ETFs) have increased selling pressure on the cryptocurrency. Net outflows from Bitcoin spot ETFs totaled $349 million, with Fidelity contributing $159 million of that amount.