Bitcoin Tests Critical Support at $112K as $280M in Leveraged Longs Get Liquidated
Bitcoin (BTC) is currently worth more than $112,000, down 1.6% in the last 24 hours. The cryptocurrency is at a crucial point that could
Quick overview
- Bitcoin is currently valued at over $112,000, experiencing a 1.6% decline in the last 24 hours and testing crucial support levels.
- A significant liquidation event wiped out nearly $280 million in leveraged long positions, primarily on the Bybit exchange.
- Japanese firm Metaplanet has aggressively accumulated Bitcoin, purchasing 5,419 BTC and aiming for a total of 210,000 BTC by 2027.
- Despite recent volatility, on-chain indicators suggest strong demand, and technical analysis shows potential for a bullish reversal if key support levels hold.
Bitcoin BTC/USD is currently worth more than $112,000, down 1.6% in the last 24 hours. The cryptocurrency is at a crucial point that could decide where it goes in the near future. The biggest digital asset in the world has dropped from recent highs and is now testing important support levels. These levels might determine if bulls can stay in charge or if larger corrections are on the way.
Massive BTC Liquidation Event Clears Market Leverage
The recent drop in prices caused a lot of liquidations in futures markets. For example, almost $280 million in leveraged long positions were wiped out during Monday’s Asian trading session. According to crypto researcher Dom, this liquidation event mostly happened on the Bybit exchange, where almost 80% of the long holdings were wiped.
The selloff sent Bitcoin below the important $111,500 barrier, putting it in a daily demand zone between $110,700 and $113,200. This correction came after an effort to break the structure in a bullish way failed when the Federal Reserve lowered interest rates on Wednesday. This momentarily raised BTC to $117,500 before the current pullback began.
Even though the market is going down, on-chain indicators show that it is still strong. CryptoQuant data shows a lot of buying going on, and the Coinbase Premium Index is still very positive. This means that there is high demand for US spot that is keeping prices from falling further.
Corporate Accumulation Continues, Metaplanet Joins Elite Bitcoin Holders
Japanese public business Metaplanet made headlines lately by buying a huge amount of Bitcoin—5,419 BTC for almost $632.5 million, or an average price of $116,724 per Bitcoin. This news adds to the positive story. This purchase brought Metaplanet’s total holdings to 25,555 BTC, making it the fifth-largest corporate Bitcoin holder in the world.
The firm wants to raise $1.4 billion through different fundraising sources as part of its aggressive accumulation strategy. Its goal is to possess 210,000 BTC by the end of 2027, which is almost 1% of the total supply of Bitcoin. Metaplanet says that Bitcoin has made 395.1% this year, showing how much money businesses may make by using it wisely.
BTC/USD Technical Analysis: Mixed Signals with Bullish Undertones
Bitcoin’s price movement is hard to understand from a technical point of view. The TD Sequential indicator just gave a buy signal on the 4-hour chart, completing a setup with nine red candles in a row. This pattern has historically meant that the asset may have hit a short-term bottom.
Ali Martinez, an analyst, has also found a possible inverse head-and-shoulders pattern building on Bitcoin’s 4-hour chart. If this bullish reversal pattern is confirmed, it could mean that the cryptocurrency is about to break out to the upside. It has already made the left shoulder and head parts of the pattern.
Bitcoin is at a very important point right now: the 50-day exponential moving average (EMA). If daily candles drop below $113,200, it could lose this support. For the cryptocurrency to keep its positive market structure, it will need to stay above this level.
Key Price Levels Define Near-Term Outlook
There are three important price zones that will probably decide what Bitcoin does next:
- Immediate Support ($110,700 – $113,200): A quick bounce back from this demand zone would suggest that the recent drop was a healthy leverage flush, which might push BTC back above $117,000 in the short term.
- Secondary Support ($107,200): If the recovery is slow, Bitcoin might move toward this level, where more than $3 billion in long bets are still open. In this case, more liquidations could happen before the next upward rise starts.
- Major Support ($100,000): If the price drops below $107,200, it would mean a big change in the structure of the market. This might mean that the cycle is coming to an end and the market is entering a longer period of consolidation.
Market Structure Remains Constructive Despite Short-Term Weakness
Even though the market has been very volatile lately, the general structure still favors bulls. Axel Adler Jr., a Bitcoin researcher, said that demand has stayed steady over the past month, with a total of 95,800 BTC. This steady accumulation has kept prices near the top of the recent trading range, even while futures markets are showing signs of weakening in the short term.
The Glassnode data shows that the short-term holder cost basis is close to $111,400, which is a key “battle line” between bulls and bears. If prices stay above this level, it would sustain the current bullish mood. On the other hand, if prices go below this level for a long time, it might mean that the market is becoming bearish.
Bitcoin Price Prediction: Cautious Optimism, Defined Risk Parameters
Bitcoin looks like it might be able to rebound soon, based on both technical and fundamental analysis. The latest drop may not be a trend reversal, but rather a healthy correction, because of solid spot demand, corporate accumulation, and technical buy signs.
The most likely thing to happen is that the price will bounce back from present support levels and aim to go back to $117,000–$120,000 in the next several weeks. Traders should keep a close eye on the $113,200 mark, though, because a clear breach below it might lead to bigger corrections toward $107,200 or even $100,000.
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