The bearish sentiment weighing on the cryptocurrency market was briefly interrupted as Bitcoin (BTC), along with most altcoins, suddenly surged by several thousand dollars in just a few minutes. However, the rally quickly proved to be a false breakout, with the largest digital asset plunging back to its starting level almost as fast as it had risen.
Price charts clearly illustrate this move. Earlier on Monday, BTC was rejected at the $90,000 mark and subsequently dropped below $85,500 in the following hours. For the next 48 hours, Bitcoin traded mostly under $88,000 before staging a sudden rally earlier today.
Within minutes, BTC jumped by more than $3,000, climbing just above $90,000. Yet the rebound was short-lived, as strong selling pressure emerged and forced prices to rapidly retrace back to their original levels.
Many altcoins followed the same pattern, recording sharp intraday gains that were immediately rejected. As a result, liquidation activity spiked across the market. According to data from CoinGlass, total liquidations reached roughly $300 million, with a near balance between long and short positions — approximately $140 million in longs versus $152 million in shorts.
The number of liquidated traders surpassed 100,000, while the single largest wiped-out position occurred on Binance, valued at nearly $4 million.
Commenting on Bitcoin’s sharp move, popular crypto analyst CryptoJelleNL suggested that the rejection near $90,000 could signal further downside risk. He warned that BTC may continue to correct, potentially dropping toward the $83,000 level or even lower.
