Bitcoin's average daily long liquidations have fallen to $7.5 million, the lowest level since July 2024. This decline suggests that excessive leverage has been largely flushed from the market, reducing forced selling and potentially giving bulls more room to build a recovery. The Bitcoin Impact Index, which measures financial stress among Bitcoin holders, combines on-chain holder behavior, ETF and derivatives activity, and exchange-level liquidity flows into a single weekly score.
Market Analysis
The Bitcoin derivatives market continues to show signs of cooling, with average daily long liquidations at their lowest level since July 2024. Short liquidations were also relatively low at around $19 million per day. ETF demand picked up sharply, with spot Bitcoin ETFs recording around $853.5 million in net inflows, their strongest weekly inflow since April.
Despite stronger ETF demand, long-term holders are moving in the opposite direction. Long-term holder supply fell by nearly 100,000 BTC over the past week, marking its largest weekly decline since late 2025. Smaller holders also showed unusually strong activity, with wallets holding less than 100 BTC reducing their combined balance by more than 42,000 BTC.
Technical Outlook
Bitcoin has reclaimed the 200-week SMA and broken above the descending channel on the four-hour chart, with the move supported by higher trading volume. However, four-hour and lower timeframes are beginning to show potential bearish divergences, which could make it difficult for Bitcoin to immediately reach the next major target at $68,000.
