Bitcoin Breaks $112K Amid $533M Liquidations and Fed Rate Cut Buzz
Bitcoin hit $112,000 this week as Fed minutes showed dovish tone. Traders think rate cuts are coming as early as July 2025...
Quick overview
- Bitcoin reached a new local high of $112,069 this week, driven by dovish Fed minutes suggesting potential rate cuts by July 2025.
- The crypto market surged, with significant liquidations of $533M, predominantly from short positions, as traders reacted to the bullish sentiment.
- Technical indicators show Bitcoin is above key moving averages, with a critical support level at $110,624, indicating bullish control.
- Traders are considering two scenarios: a breakout above $112,069 or a retest bounce from $110,624, with targets set for higher price levels.
Bitcoin hit $112,000 this week as Fed minutes showed dovish tone. Traders think rate cuts are coming as early as July 2025. That’s boosted the entire crypto market with altcoins like ETH, XRP and ADA joining the party.
The broader market saw the Fed as supportive of risk assets. When borrowing costs go down, capital flows into high-volatility assets like crypto. Bitcoin’s move is a textbook reaction to easing liquidity.
Fed minutes highlights:
- Rate cuts are being discussed for July
- Inflation risks from trade policy remain a concern
- Overall stance is shifting to support growth
This macro backdrop pushed Bitcoin to a new local high of $112,069 before a minor pullback to $111,084.
$533M Liquidated as Shorts Get Squashed
The breakout wasn’t quiet. According to CoinGlass, $533M in positions were liquidated in the last 24 hours – 88% of them were shorts. 115,900 traders were affected and the largest single liquidation on HTX was $51.5M.
Notable numbers:
- BTC liquidations: $234.46M
- ETH liquidations: $152.44M
- Long/short ratio: Clearly bullish
This forced selling added fuel to the fire and prices went even higher as bears covered their positions.
Bitcoin Technicals: Watch $110.6K
Bitcoin’s breakout above the symmetrical triangle on the 4H chart was clean and on strong volume. Price hit $112,069 before consolidating below resistance. A series of small candles now suggests temporary hesitation but as long as BTC is above the $110,624 zone, bulls are in control.
Technical setup:
- BTC is above the 50-EMA ($108,818) and 200-EMA ($106,808)
- RSI is cooling from overbought, around 62 – good for consolidation
- No bearish reversal pattern yet, but resistance is firm
Trade Setup: Breakout or Retest
Scenario 1: Breakout
- Entry: Close above $112,069* Stop: $110,624
- Target: $112,944 and $113,693
Scenario 2: Retest Bounce
- Entry: Bullish bounce from $110,624 or 50-EMA
- Confirmation: Hammer or bullish engulfing
- Target: $112K → $113K
- Stop: $109,724
In my experience, when Bitcoin breaks out of a triangle and consolidates near highs without reversing, a second leg up is often the case. But if $110,624 fails, expect a retest to $108,500 or $107,500.
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