Bitcoin Price Forecast: Can BTC Rebound After $70M Long Wipeout?

Bitcoin’s (BTC) sharp dip below $111,000 on Binance wiped out over $70 million in leveraged longs. Still, the violent flush may have cleared the market for renewed upside, according to onchain analyst Amr Taha.

Bitcoin Funding Rates Stay Positive Despite Price Drop

Throughout August, Binance funding rates stayed unusually high, hovering between 0.005% and 0.008%.

This shows traders were still paying a premium to keep long positions open, even as Bitcoin slipped more than 10% from its record highs near $124,500 established over a week ago.

In other words, optimism didn’t fade. Instead, many traders doubled down, convinced the pullback was just a temporary setback. That conviction finally snapped once the price fell deep enough to trigger a wave of forced liquidations.

On Aug. 25, Bitcoin broke through $111,000, liquidating over $70 million in long positions within hours.

Binance’s liquidation heatmap shows that the liquidity pool beneath $112,000 was almost destroyed.

Amr Taha said this flush was critical because it cleared out the largest concentration of overleveraged longs in the market, effectively resetting positioning after weeks of stubborn optimism.

The heatmap also highlights where Bitcoin could be heading next. The deepest pool of long liquidations has already been cleared under $112,000, meaning weak hands no longer weigh down the market at that level.

Bitcoin’s next dense cluster of liquidations sits around $117,000 to $118,000. So, if BTC price regains momentum, that zone could act as a magnet for price and even trigger a short squeeze if sellers get trapped.

On the downside, some residual liquidity is near $108,000, but it is relatively minor, with the next significant level closer to $105,000.

Can Bitcoin Price Rise Again?

Bitcoin’s Open interest collapsed as contracts were closed after the $70 million long liquidation event. Also, cumulative net taker volume sank to minus $1 billion, showing sellers firmly in control.

At first glance, this points to severe forced selling. But with weak longs flushed out and leverage reset, Taha says the market is now healthier and less exposed to another cascade.

Market watchers have also noticed that Bitcoin’s recent dip resembles the price action from the second quarter of 2025.

Then, BTC also formed lower lows and briefly broke below its trendline, leading many to assume the rally was over, only for the market to bounce sharply higher soon after.

The current chart shows the same structure, with a capitulation that forced traders into fear. If the pattern repeats, another rebound may be closer than most expect.

As analyst Cas Abbe suggests, all traders may need to do now is “hold.”