Liquidations and Market Sentiment

Liquidations have traditionally been used as a gauge of market sentiment and direction. Judging by the Bitcoin (BTC) trades on Bitfinex, traders are feeling the heat of a long squeeze in March 2025.

According to data retrieved from the crypto lending analytics platform Datamish on March 14, Bitfinex experienced a wave of liquidations this month, with long positions taking a devastating hit.

Specifically, out of a total of 4,226.8 BTC liquidated, 4,196.9 were related to long positions, a staggering 99.29%.

Generally, such long and short squeezes occur when the market moves against traders who made a leveraged trade—borrowing money for their investment—thereby rendering the collateral (margin) insufficient and forcing the closure of the position.

Why are Bitcoin Long Positions Getting Wiped in March?

Examining Bitcoin’s price action in 2025 and March, the long squeeze appears to be a natural extension of the cryptocurrency market bloodbath.

Though BTC has shown resilience in the $80,000 to $83,000 range, this support level feels somewhat underwhelming, especially after multiple dips, including one toward $77,000 on March 10.

Even with its current price range appearing impressive compared to historical levels, it becomes bearish considering that Bitcoin’s all-time high (ATH) was above $109,000 as recently as January.

In the last 30 days, BTC dropped 13.41% to a current price of $82,596, with a more modest drop of 3.5% in March. The month featured substantial volatility with highs above $94,000 and lows near $77,000.

What is Next for Bitcoin in 2025?

Despite high hopes that Bitcoin’s bullish cycle is not over, the coin has been forming a pattern reminiscent of the summer of 2024. Specifically, between June and November that year, BTC was on a slow downtrend, continuously finding lower lows followed by lower highs.

Like its March performance, BTC managed to maintain a somewhat stable level near $60,000 during that time. However, this trajectory was abruptly reversed with Donald Trump’s re-election in November.

At press time, no comparable events are scheduled for the future, making it difficult to speculate on how the current turmoil will end—especially if Bitcoin’s performance mirrors the previous summer.

Nevertheless, previous analysis, regulatory developments, institutional adoption, and historical halving cycles leave many investors optimistic that a breakout to a new high will occur in 2025.

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