Liquidation Dominance Hits Three-Year High as Bitcoin Struggles Near $90,000

Bitcoin's price has been struggling to regain momentum near $90,000 as a wave of forced liquidations continues to put pressure on leveraged buyers. According to data shared by Axel Adler, the liquidation dominance oscillator has reached 32%, marking one of the highest readings 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. In November, there were 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.

The repeated cycles of forced selling have amplified downside momentum rather than stabilizing price action. This has created a challenging environment for bulls, who need to reclaim $95,000 on a weekly closing basis to regain control of short- and mid-term momentum. If the 100 SMA fails to hold, the next major support zone sits near $70,000-$72,000.