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Bitcoin price action on Sunday descended into chaos after a wave of sell orders fueled by currency whales sparked a rapid $2,000 drop, mass liquidation and an equally powerful rebound.
The moves rattled long and short traders in a matter of hours, raising new concerns about handling low liquidity and the fragility of the order book at a time when Bitcoin continues to soar above $91,000.
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$1.39 billion worth of Bitcoin was sold in an hour
Several analysts reported the emergence of a coordinated sale, with more than 15,565 bitcoins, worth about $1.39 billion, traded on the market in one hour.
“Here’s why the market suddenly fell: Whales sold 4,551 BTC, Coinbase 2,613 BTC, Wintermute 2,581 BTC, Binance 2,044 BTC, BitMEX 1,932 BTC and Fidelity 1,844 BTC,” wrote a Weimar analyst. 15,565 Bitcoin worth $1.39 billion in one hour! This was a completely coordinated sale.”
The sudden increase in supply that hit the market simultaneously accelerated Bitcoin’s decline from $89,700 to $87,700, paving the way for a series of ratings.
$171 million in liquidation as long and short positions were removed
The initial sharp decline wiped out $171 million worth of long Bitcoin positions, and they were caught off guard when the price of Bitcoin dropped $2,000 in a few minutes before recovering so hard. At the time of writing this article, the price of Bitcoin is $91,494.
Along with this rapid recovery, almost $14 million in short positions were liquidated in the last hour and more than $91 million in the last four hours.
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Bull Theory said: “This is another example of manipulation during a weekend of low liquidity to remove long and short leveraged positions.”
Coinglass data confirms the extent of the damage. In the last 24 hours, 121,628 traders were liquidated, resulting in a total liquidation of $346.67 million.
Traders call it “increase in managed liquidity”.
Commentators say this was no ordinary flop and Marto argues that the sequence was no coincidence.
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“People keep calling this volatility,” he wrote. “It’s not. It’s a programmed accumulation of liquidity. When the order book is thin, the whales swing the price like a door hinge and benefit from both sides.”
Others have noted the speed of recovery, and comment Lennya trader known for tracking liquidity flows, noticed the sudden reversal movement.
He said Lenny: “Honestly, the fall of BTC to 89k was quickly absorbed. This is not hype.”
Absorption rate refers to… Strong demand for spot trading It remains even as aggressive leaks continue into the weekend lows.
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Can Bitcoin Sustain $90,000?
Bitcoin recovers its losses over the weekend, but still shows signs of stress on the day. The double liquidations show how weak order books continue to target big players capable of moving billions of dollars in minutes.
Spot demand may stabilize price action next week, especially as liquidity normalizes and derivatives markets reset.
With more than $300 million in liquidation, Bitcoin enters the following trading sessions with liquidated leverage, but also with increased sensitivity to subsequent whale movements.
Meanwhile, the data shows that $1 billion of short positions are at risk of liquidation if the price of Bitcoin rises to $93,000.
It should be noted that the $93,000 limit is just 2% above current prices.
