The blood rain in Bitcoin: $1 billion liquidated and the technical pattern pointing to $62k

Bitcoin market experienced extreme volatility in the last 24 hours, with movements that left the crypto landscape under intense pressure. What started as a technical correction turned into a massive purge of leveraged positions, generating what analysts call a true “bloodbath” on the charts. Between $600 million and over $1 billion in long positions were liquidated in a single day, a phenomenon that reflects both the aggressiveness of the volatility and the vulnerability of those operating with excessive leverage.

Bitcoin’s price touched critical zones near $92k-$95k, triggering a cascade of automatic sell-offs that exponentially deepened the decline. This typical domino effect in over-leveraged markets causes technical corrections to turn into disproportionate moves. Currently, BTC is trading around $77.84K with a -0.90% drop in the last 24 hours, showing some stabilization but with traders still cautious.

The Bloodbath Pattern: Bear Flag in Action

Technical analysis suggests we are witnessing a classic formation of Bear Flag or Bearish Flag, a downward pattern that combines a brutal prior fall (the “mast”) with a small recovery channel (the flag). The resistance line of this formation is around $90k-$91k, a key psychological level for the upcoming sessions.

If the price fails to convincingly break upward and falls below the vital support of $87k-$88k, technical theory suggests a significant continuation of the correction. The technical target of this pattern points down to $62k, a level that would represent roughly a 20% drop from current prices. Although this is an extreme scenario, in highly volatile crypto markets, it should be considered as a possibility on the radar.

Despite the selling pressure, the recent rebound to $89.5k indicates that institutional capital is willing to buy during technical dips, suggesting that $87k could act as a genuine support level.

Global Bloodbath: Macro Factors Explain the Pressure

The bloodbath in Bitcoin does not arise solely from intra-crypto dynamics. In the macroeconomic landscape, intensified geopolitical tensions, movements in U.S. Treasury bonds, and increased volatility in risk assets have pushed institutional investors to seek refuge in traditional assets like gold and safe bonds.

Bitcoin behaved as a pure risk asset during this phase, moving in sync with global equity markets and suffering the consequences of a deteriorated market sentiment. This coupling with traditional equities contrasts with Bitcoin’s narrative as a store of value, demonstrating that during systemic stress, capital flows outweigh the asset’s technical properties.

Divided Sentiment: End of Cycle or Strategic Reload?

Community sentiment is polarized. Some analysts see this bloodbath as the beginning of the end of a bullish cycle, pointing out that the highs in this bullish session could have been local. Others, however, interpret these movements as natural technical pauses within a longer bullish cycle, where institutional accumulation at low prices presents a strategic opportunity.

The key in the coming days will be whether Bitcoin can consistently stabilize above $90k, which would help calm short-term trading algorithms and prevent further stop-loss triggers. We are at a moment of decisions where liquidity and patience are more valuable than any short-term conviction.

Will Bitcoin contain the pressure at $87k or will this bloodbath extend down to $60k? The answer will depend on whether institutional capital maintains its buying stance at depressed levels or if macro volatility continues to deteriorate sentiment.