Highlights:
Bitcoin and altcoins face the largest liquidation event in the history of cryptocurrency.
BTC’s price action struggles to recover from multi-week lows, inching closer to $100,000.
A trader suggests crypto is undergoing a “purge” of bull-market optimism.
Bitcoin (BTC) hovered around the $110,000 support level on Saturday following a historic $20 billion liquidation event.
Trader observes the onset of a “crypto purge”
Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD is struggling to bounce back after reaching three-week lows on Bitstamp.
Fresh market uncertainties stemming from the US-China trade war impacted risk assets globally. The S&P 500 fell 2.7% on Friday, while gold surged, climbing back above $4,000 per ounce.
Amid the crypto turmoil, Bitcoin’s relative strength index (RSI) became significantly “oversold.” The four-hour RSI reached levels unseen since the onset of the trade war disaster in February.
“Noticing a notable reduction in short positioning overall,” trader Skew posted in ongoing coverage on X.
“Some passive buying is occurring, primarily through Coinbase spot (currently experiencing a bit of a premium). Spreads remain quite wide as market makers assess the situation before liquidity returns later.”
$BTC Binance & Coinbase Spot Overview
6K Price differential on Binance spot versus Coinbase spot today, despite Binance processing 81.9K BTC in Volume on that 4H candle pic.twitter.com/nhFb79cFGi— Skew Δ (@52kskew) October 11, 2025
Skew remarked that even major crypto exchanges encountered challenges amid the downturn.
Another trader, Roman, who had been skeptical about the strength of the bull market recently, anticipated that new lows were approaching.
“This isn’t the bottom,” he informed his followers on X.
“There are over 30 million $alt coins that are largely scam projects. $BTC surged 700% from its macro bottom. The long-awaited crypto purge has initiated.”
Liquidations could exceed $20 billion
Traders who heavily invested in the bull run faced unprecedented losses in crypto market history.
Related: Bitcoin may face fluctuations amid tariff concerns: Executive
Data from CoinGlass indicates 24-hour liquidations had nearly reached $20 billion, primarily from long positions.
“The actual total is probably much higher — Binance only reports one liquidation order per second,” CoinGlass stated on X regarding the statistics.
Exchange order-book liquidity displayed a significant imbalance between bids and asks — with resistance building around $120,000, and minimal support available to stop a further drop towards $100,000.
Earlier, Cointelegraph reported expectations that BTC/USD might revisit a local low at $108,000 as part of a “ping pong” trading pattern.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers are encouraged to conduct their own research before making a decision.
