Crypto’s biggest liquidation event

GM Explorer! Bitcoin’s price action has been nothing short of dramatic lately. As I write this, BTC is hovering around $97,300, and there’s some concern about whether it might continue sliding — just as it did three days ago.

Let’s break it down.

The Aftermath of Crypto’s Biggest Liquidation Event

Monday was brutal.

In just a few hours, over $800 billion was wiped from the crypto market cap, and the official liquidation data reported was $2 billion. 

However, according to Ben Zhou, Bybit’s Co-founder and CEO, the actual liquidation amount could be much higher—closer to $8-$10 billion.

Here’s why:

Bybit’s actual liquidation data alone was $2.1 billion, which was way higher than the $333 million officially reported by Coinglass.

Where Do We Go From Here?

Last week, the entire crypto market had its eyes locked on the FOMC meeting. Many, including us, believed it could set the stage for Bitcoin’s next major move.

We laid out the key factors that could tip the market in either a bullish or bearish direction.

But in a surprising twist, the meeting’s outcome landed right in the middle—neither bullish nor bearish.

With no clear direction, it meant there was uncertainty ahead.

So, we sent out a broadcast to our premium members, letting them know what to expect, even though some of our coins were up 15% to 35% that day.

And sure enough, over the past few days, things became crystal clear:

Bitcoin plunged more than 13%—all thanks to fears surrounding the latest trade war escalation.

Trump’s Trade War

Market makers seized the moment when Trump officially announced new tariffs on goods and services from Canada, Mexico, and China.

They drove the price of Bitcoin below $93K, triggering the liquidation levels in that range.

At this point, market makers have little incentive to push prices lower.

However, here’s the key level to watch:

If Bitcoin closes the day below $97,300 (the red support band), it could drop to $85K - $82K. This is the last major liquidation range below the current price.

Do we think this will happen? Probably not, but it’s a possibility.

📊 Yes, Bitcoin is below multiple moving averages but has been bouncing off the yellow diagonal trendline for days. If it holds (which we think it would), BTC could see a strong rebound.

Why We Believe Bitcoin Will Go Higher

The short answer is Bitcoin’s seasonality.

Take a look at this chart:

Bitcoin has only ever posted negative February returns twice—in 2014 and 2020.

• 2014: A bear market year

• 2020: A halving year

We’re currently in the post-halving year

📈 In past post-halving years, February has been extremely bullish:

• 2013: +61%

• 2017: +23%

• 2021: +36%

On average, Bitcoin typically sees a double-digit growth (14% upside) in February.

Also, look at Bitcoin’s market circle bottom ROI chart below (a chart that tracks the ROI of all Bitcoin market cycles).

The chart shows that Bitcoin’s trajectory closely mirrors the 2015-2017 cycle, suggesting we could be on the brink of a major rally.

If history repeats itself, February could be Bitcoin’s biggest breakout yet.

What About Altcoins?

We’re still in the “max pain before takeoff” phase for altcoins, and our premium members have been positioning accordingly.

We’ve already started seeing huge gains from some of the picks we’ve taken over the last few weeks.

Here’s an example of a coin our premium members invested in. They have already seen 48% growth within the last 20 days alone.

20 days later:

Mantra delivered incredible returns—even after last week's DeepSeek scare, the trade war crash, and one of the biggest crypto liquidation events in history.

And that’s not all.

Just two days ago, we secured a 110% gain on an AI coin we’ve been dollar-cost averaging into.

If you’d like to get real-time alerts on our top altcoin picks and expert strategies to maximize your crypto exposure. Join our premium community now and stay ahead of the market.

Click here to join. 🚀

That’s all for today. We’ll see you on Friday!

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.