Bitcoin Hits Highest Level Since 2021: Critical Liquidation Indicator Reaches 23.6%

Bitcoin Long Liquidation Dominance Reaches Five-Year High

Cryptocurrency analyst Anıl (@anlcnc1) highlighted a significant change in Bitcoin's derivatives market in a post shared on X. According to the analyst, long liquidation dominance had struggled to exceed previous peaks around 22% over the past year. However, this trend changed when the indicator climbed to 23.6% on November 14.

The chart shows that the indicator reached 23.9% in 2021 but failed to establish comparable peaks in subsequent years. More recently, levels of 22.4%, 22%, and 22.2% stood out before the latest increase pushed the indicator above its previous highs. The analyst emphasized that the 23.6% reading represents the highest level recorded since 2021.

Long liquidation dominance is an indicator used to assess liquidation pressure on leveraged positions opened in anticipation of rising prices. However, the shared chart does not provide a detailed explanation of the methodology used to calculate the 23.6% figure. Therefore, it would be incorrect to interpret this percentage as meaning that long positions accounted for 23.6% of total daily liquidations.

How Have Bitcoin's Sharp Selloffs Affected Long Positions?

Liquidation data from November 14, 2026, reveals the extent of the selling pressure faced by traders who opened leveraged positions expecting Bitcoin's price to rise. According to data published by Liqwall, approximately $629 million worth of leveraged positions were liquidated in the Bitcoin market that day. Of this amount, $580 million involved long positions, while $49.3 million came from short positions. Consequently, approximately 92% of daily Bitcoin liquidations occurred in bullish trades.

Across the broader cryptocurrency market, approximately $1.54 billion in liquidations was recorded on the same day. Long positions accounted for $1.45 billion, while Ethereum recorded $424 million in liquidations, Solana saw $91.8 million, and XRP experienced $45.3 million in forced position closures. These figures indicate that the selling pressure was not limited to Bitcoin.

Leveraged long positions are trades opened by investors expecting an asset's price to increase. When Bitcoin falls below certain price levels, exchanges may automatically liquidate positions whose collateral has become insufficient. As these liquidations trigger additional forced selling, they can accelerate price declines, particularly during periods of weak market liquidity.

The 23.6% reading highlighted in Anıl's chart and the 92% share of long positions in daily liquidations are based on different measurements. Nevertheless, both indicators suggest that leveraged bullish positions have been experiencing considerable pressure.

Is Another Bitcoin Price Decline Coming?

Long liquidation dominance reaching its highest level since 2021 is a development that deserves careful consideration when assessing Bitcoin's future price direction. However, elevated liquidation indicators do not always signal the beginning of a larger decline. During certain periods, intense liquidations can help stabilize prices by removing excessively leveraged positions from the market.

The decisive factor will be whether fresh buying demand emerges after the forced selling subsides. The closure of a substantial portion of long positions may reduce the risk of additional liquidation pressure during subsequent declines. Conversely, if selling continues in the spot market and investors remain reluctant to open new positions, Bitcoin's weakness could persist.

The historical pattern shown in the chart also does not provide a definitive market-bottom signal on its own. Elevated liquidation ratios have appeared under different market conditions in the past. Therefore, investors should monitor open interest, funding rates, spot trading volume, and buying demand across cryptocurrency exchanges together.

According to Kriptofoni's assessment, Bitcoin's long liquidation dominance reaching 23.6% represents an important warning signal highlighting the impact of the latest selloff on leveraged traders. The indicator reaching its highest level in nearly five years suggests that the market is experiencing unusually intense liquidation pressure. However, it remains uncertain whether the reading signals the beginning of another downward move or reflects a potential stabilization phase following heavy selling.

Bitcoin's next direction will become clearer as liquidation activity slows and buyers begin returning to the market. In particular, stronger spot demand accompanied by reduced risks in leveraged trading will be crucial in determining whether a potential recovery can be sustained.