Bitcoin traders got crushed on Monday. Bitfinex analysts reported $584 million in long liquidations, tying the sell-off to geopolitical pressure and climbing Treasury yields. The move sent Bitcoin back toward its May monthly open support, a level that's now being tested.
The liquidation event was one of the largest single-day long squeezes this year. According to the report, the unwind was concentrated in perpetual swap markets where leverage had built up over the prior week. When the sell-off started, cascading liquidations amplified the drop, wiping out positions that had looked safe just days earlier.
Why the market turned
Bitfinex analysts attributed the downturn to two macro factors. Geopolitical tensions — the report didn't specify which ones — added uncertainty across risk assets. Meanwhile, rising U.S. Treasury yields continued to pull capital away from speculative markets. Crypto, which often trades like a high-beta tech asset, felt the shift first.
It's not the first time this year that macro pressure has blindsided leveraged traders. But the speed of Monday's move caught many off guard.
The $85,900 resistance level
For anyone hoping for a quick rebound, Bitfinex analysts have a warning. They identified $85,900 as a critical resistance that could cap Bitcoin's recovery. If the price bounces from its current support, it's likely to hit selling pressure at that level. A break above $85,900 would signal a real change in sentiment — but the report suggests that's not imminent.
Support or breakdown?
Right now, all eyes are on the May monthly open. That level has held since the month began, but it's under pressure. If it breaks, the next support could be significantly lower. The analysts didn't predict a breakdown, but they didn't rule one out either. The market is waiting to see which side gives way first.
Bitcoin is trading near that support as of Wednesday. The next few days will tell whether the liquidation event was a one-off shock or the start of a deeper correction.
