Main Highlights:
Bitcoin and altcoins are undergoing significant fallout from the largest liquidation event ever recorded in crypto.
BTC struggles to bounce back from multi-week lows, with the $100,000 mark looming closer.
According to a trader, the crypto market is undergoing a “cleanse” to remove bull-market euphoria.
On Saturday, Bitcoin (BTC) hovered around the $110,000 support level as reactions settled from an unprecedented $20 billion liquidation event.
Trader identifies onset of “crypto cleanse”
Data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD is struggling to recover after dropping to three-week lows on Bitstamp.
New market tensions related to the US-China trade conflict affected risk assets widely. The S&P 500 fell by 2.7% on Friday, while gold managed to rise above $4,000 per ounce.
In the midst of the crypto turmoil, Bitcoin’s relative strength index (RSI) fell into deeply “oversold” territory. The four-hour RSI is at levels not observed since the start of the trade war crisis in February.
“A significant amount of short positions are rolling off here overall,” trader Skew reported on X.
“There is some passive buying occurring mainly via Coinbase spot (with a bit of a Coinbase premium at the moment). Spreads remain very wide, and market makers are likely assessing damage before liquidity returns later on.”
$BTC Here’s Binance & Coinbase Spot
6K price difference on Binance spot compared to Coinbase spot today, although Binance had 81.9K BTC in volume during that 4-hour candle pic.twitter.com/nhFb79cFGi— Skew Δ (@52kskew) October 11, 2025
Skew noted that even major cryptocurrency exchanges struggled amid the rapid market decline.
Trader Roman, who expressed skepticism about the recent bull market, forecasted further declines.
“This is not the bottom,” he told his followers on X.
“There are over 30 million $alt coins, most of which are scam projects. $BTC has surged 700% from its macro low. The anticipated crypto cleanse has commenced.”
Liquidations “likely much higher” than $20 billion
Traders heavily invested in the bull run faced unprecedented losses in crypto history.
Related: Bitcoin may experience volatility amid Trump tariff worries: Executive
Data from CoinGlass shows that 24-hour liquidations approached $20 billion, with long positions making up the majority.
“The actual total is likely much higher — Binance reports only one liquidation order per second,” CoinGlass noted on X regarding the statistics.
Exchange order-book liquidity exhibited a significant imbalance between bids and asks — resistance was established around $120,000, while little support existed to guard against a new drop toward the $100,000 level.
Earlier, Cointelegraph reported on the expectation that BTC/USD could retest its local range bottom at $108,000 as part of a “ping pong” price pattern.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should perform their own research before deciding.