Bitcoin tests support for three consecutive days; high leverage longs face liquidation risk

2026-01-08 16:28:12

【Blockchain Rhythm】Bitcoin has been quite active these days. After rebounding from a low point to $90,500, it started to decline again, briefly touching $89,300, almost losing the support level near the 50-day moving average at $89,200. This is already the third consecutive day of adjustment, compared to just reaching close to $95,000 on Monday.

Analysts from crypto trading firms pointed out that the recent decline is mainly due to two reasons—significantly low trading volume and many traders taking profits at high levels. Although risk appetite briefly increased after the market opened at the beginning of the year, the market failed to break through the key resistance at $95,000. In the past two days, it has shown clear two-way volatility, and ETF funds have continued to flow out.

The Federal Reserve’s rate cut expectations are also dampening the market. According to CME data, the probability of a rate cut at the January 28 Federal Reserve meeting is only 11.6%, down from 15.5% a week ago and 23.5% a month ago, indicating a weakening outlook.

More concerning is the situation on the derivatives side. The funding rate for Bitcoin perpetual contracts remains around 0.09% positive, indicating that longs are still leveraging up, buying on dips with borrowed money. When these concentrated long positions cool off, even mild dips can trigger chain reactions of forced liquidations, bringing new selling pressure. The market leverage continues to rise, and this risk should be taken seriously.

BTC-0.4%

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FundingMartyr

· 01-11 16:14

Those who bought in at high prices are crying. I just want to know who is still leveraging.

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TerraNeverForget

· 01-11 05:33

Those trapped at high levels are all waiting for a rebound to cut losses. This wave might need to drop to 85,000 before finding a bottom.

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NonFungibleDegen

· 01-08 16:58

ngl the 89.2k support is basically cope at this point... three days of getting rekt and we're supposed to believe there's a bottom? smh paper hands taking profits while us degen apes get liquidated, probably nothing tho wagmi

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CryptoMotivator

· 01-08 16:58

Damn, it's repeatedly crashing again. The guys using high leverage are probably going to get liquidated. --- If 89,200 can't hold, it's over. Feels like it's about to be pushed down. --- Lack of volume, this market is so dull it’s killing me. Still waiting for the Fed to loosen. --- Uh, is it going to break support again? I already sold everything early, so scared I can't even. --- Friends trapped at high levels, stay strong. Don't panic, this is just a shakeout. --- The market just needs a positive catalyst, or else 95,000 will really be a hurdle.

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PanicSeller69

· 01-08 16:58

Is it another adjustment? Is the $95,000 barrier really that tough? If I can't hold $92,000, I'll just go to sleep to avoid watching the market. The guys who cashed out at the high are making a killing, while I'm still picking up the pieces at the bottom. Federal Reserve, stop cutting interest rates, just let Bitcoin fend for itself. ETF net outflows? Is this a signal or does no one want it anymore?

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MEVHunterZhang

· 01-08 16:52

Wow, repeatedly bouncing around 89K again? Be careful, guys with high leverage, the liquidation list is probably going to add more people again. Playing the game of selling at high levels, I knew 95K wouldn't break through easily, it's all just illusions. ETF net outflow? Really? This rhythm seems a bit like a prelude to a crash. The probability of the Federal Reserve's side has dropped again. This is truly the biggest killer suppressing the market, nothing more to say. Did the 50-day moving average hold or not? That's the key, right?

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