Bitcoin Liquidations Reach Three-Year High as Sellers Maintain Control
Bitcoin's price has continued to struggle below $90,000 as leveraged buyers face intense pressure from forced liquidations that have reached levels not seen in years.
Data shows long positions dominating the liquidation landscape, with sellers maintaining control and preventing any sustained recovery attempts. According to Axel Adler, the liquidation dominance oscillator now registers 32%, marking one of the highest readings recorded in the past three years.
This metric measures the ratio between long and short liquidations across derivatives markets, with positive values indicating long positions absorbing the majority of losses.
The recent wave of forced selling has been particularly intense, with November seeing three distinct liquidation waves, each exceeding $400 million and aligning with sharp declines in Bitcoin's price. The most recent flush totaled $221 million and occurred as BTC attempted a short-term recovery, immediately reversing gains and pushing the asset back toward the $86,000 region.