Bitcoin experiences new bearish pressure as prices fall back from recent highs. While the decline has spooked investors, large investors continue to grow their holdings. The analysts comment that rapid liquidations and high leverage have fueled rapid reversals, and investors watch for another move.
At the time of writing, Bitcoin (BTC) is trading at $112,341, reflecting a -2.39% drop in the past 24 hours. The BTC currently records a 24-hour trading volume of $67.10 billion and a market capitalization of $2.24 trillion.
In a major development, Metaplanet purchased an additional 5,419 BTC, increasing the aggregate BTC holdings of the company to 25,555 BTC. This purchase solidifies even more firmly the position of the company in the digital asset market and suggests continuing belief in BTC beyond short-term volatility.
Meanwhile, data from the on-chain analytics firm Glassnode shows Bitcoin’s unexpected drop below $115,000 prompted over $100 million in long position closures within days. Analysts explained how leveraged positions grew more vulnerable once prices declined below essential support areas.
Supporting this, heatmap data reveals heavy concentrations of liquidation in the $113,000 to $114,000 range, showing this range saw some of the most highly leveraged exposure in the market. The drop wiped out a contingent of high-risk longs, and players were sitting tight to find out Bitcoin’s next move.
While BTC remains strong around the $112K mark, the market today expects to see if the cryptocurrency returns to stability and gathers strength, or if it continues to face bearish pressure.
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The RSI is 43.42, showing weakening trend strength, and the MA Ribbon indicates pivotal resistance near $114,407 and support near $113,257. This shows the market is sloping into bearish territory after being unsuccessful in remaining above ribbon levels.
The MACD line sits at -15.95, lower than the signal at 548.38, and the histogram begins to flash red. This crossover indicates sellers take over as momentum shifts in the negative direction. Until bulls intervene, BTC can test lower support around $109,503 in the near term.
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