Bitcoin Dips Below $115K, Triggers $100M Liquidations

The cryptocurrency market witnessed significant turbulence as Bitcoin’s unexpected decline below $115,000 prompted a cascade of long position liquidations exceeding $100 million within days. According to data from on-chain analytics firm Glassnode, the rapid price movement exposed the vulnerability of over-leveraged positions that had accumulated during Bitcoin’s recent rally. The liquidation event highlights the persistent risks associated with high leverage in cryptocurrency markets, where even modest price corrections can trigger outsized consequences for traders operating with borrowed funds.

Heatmap data reveals particularly heavy liquidation concentrations between $113,000 and $114,000, indicating this range contained some of the most highly leveraged exposure in the market. This concentration of risk created a domino effect as initial liquidations forced additional selling pressure, accelerating the downward momentum. The wipeout of high-risk longs has left market participants cautious, with many now watching closely to see if Bitcoin can stabilize or faces further bearish pressure in the coming sessions.

While retail traders faced liquidation pressures, Japanese investment firm Metaplanet demonstrated remarkable conviction by purchasing an additional 5,419 BTC during the market downturn. This strategic acquisition brings Metaplanet’s total Bitcoin holdings to 25,555 BTC, solidifying the company’s position as a significant institutional player in the digital asset market. The move represents a continuation of Metaplanet’s publicly stated strategy to treat Bitcoin as a core treasury reserve asset, mirroring approaches taken by other corporations seeking hedge against currency volatility and inflation.

Metaplanet’s accumulation during price weakness suggests the firm views current levels as attractive entry points despite short-term volatility. The company’s consistent buying pattern indicates a long-term investment horizon that contrasts sharply with the leveraged traders who were forced out of their positions. This divergence in behavior between institutional accumulators and leveraged speculators highlights the evolving maturity of Bitcoin markets, where different participant types operate with fundamentally different timeframes and risk tolerances.

Technical analysis reveals concerning signals for Bitcoin’s near-term trajectory. The Relative Strength Index (RSI) sits at 43.42, indicating weakening trend strength and suggesting bearish momentum may persist. More notably, the Moving Average Convergence Divergence (MACD) shows a bearish crossover with the MACD line at -15.95 sitting below the signal line at 548.38, while the histogram has turned red—a classic technical indication that sellers are gaining control of market momentum.

The MA Ribbon analysis identifies pivotal resistance near $114,407 and support near $113,257, with Bitcoin’s failure to maintain levels above the ribbon signaling a shift toward bearish territory. Unless bullish forces intervene, technical analysts suggest Bitcoin could test lower support around $109,503 in the near term. At the time of writing, Bitcoin trades at $112,341, reflecting a 2.39% decline over 24 hours, with a market capitalization of $2.24 trillion and 24-hour trading volume of $67.10 billion.

The critical question facing market participants is whether Bitcoin can find stability around current levels or faces additional downward pressure. The substantial liquidations have effectively cleared out over-leveraged long positions, potentially creating a healthier foundation for the next move. However, the technical indicators suggest bearish momentum may not be exhausted, particularly if Bitcoin fails to reclaim key resistance levels in the $114,000-$115,000 range.

The contrasting behaviors between institutional accumulators like Metaplanet and leveraged speculators create an interesting dynamic. While liquidations reflect short-term panic, continued institutional accumulation suggests underlying confidence in Bitcoin’s long-term value proposition. This divergence sets the stage for a potential battle between short-term technical pressures and longer-term fundamental conviction, with the outcome likely to determine whether Bitcoin stabilizes and regains momentum or tests lower support levels in the days ahead.