Bitcoin's Leveraged Buyers Crushed by Three-Year High Liquidation Dominance

Bitcoin has been struggling to break above $90,000 as leveraged buyers face mounting pressure from forced liquidations. Data shows long positions dominating the liquidation landscape, with sellers maintaining control and preventing any sustained recovery attempts.

The liquidation dominance oscillator now registers a three-year high of 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.

November saw 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.

The repeated cycles of forced selling across futures platforms have amplified downside momentum rather than stabilizing price action. Bulls need to reclaim $95,000 on a weekly closing basis to regain control of short- and mid-term momentum.