Why did the crypto rally end with $423M in long position liquidations?

A sharp pullback in Bitcoin and major coins put an end to the latest crypto rally after approximately $423 million in leveraged long positions were liquidated in less than 24 hours.

Bitcoin failed to break above the area near $87,000, fell below $84,000, and long position liquidations of around $423 million brought the total market capitalization of cryptocurrencies back below $3 trillion.

The selloff was driven by the accumulation of leveraged long positions at key resistance levels, triggering a cascade of forced liquidations that affected Bitcoin, Ethereum, and the major altcoins.

Despite this purge, open interest in derivatives remains high, with support for Bitcoin around $80,000 and resistance near $87,000 as key levels for the next volatile move.
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