Bitcoin News Today: "Bitcoin Hovers at Pivotal $112K Threshold, Triggering $14M in Short Liquidations"

Bitcoin’s price movements below key levels have triggered heightened liquidation risks across major centralized exchanges (CEXs), according to recent data from Coinglass. Specifically, if Bitcoin drops below $110,000, the cumulative long liquidation pressure on CEXs is projected to reach $977 million, amplifying the risk of further downward momentum in the short term [2]. Meanwhile, broader market analysis suggests that both bulls and bears are positioned around critical price levels, with significant leverage exposure on either side [3].

The recent price action has seen Bitcoin briefly rebound above $112,000, a level that has historically served as a key psychological and technical support. This move liquidated short positions amounting to $14.32 million within an hour, according to data from CoinGlass [1]. Analysts, including Skew, noted that the rebound was supported by strong buying interest at $100 million, reinforcing the belief that the $112,000 level is a crucial test for the sustainability of the current bullish momentum. Michael van de Poppe of MN Capital echoed this sentiment, suggesting that a confirmed breakout above $112,000 could signal another major long opportunity [1].

On the technical side, Bitcoin’s price remains in a consolidation phase after a recent dip below $110,000, where buyers absorbed some of the selling pressure. The 50-day and 100-day exponential moving averages are converging, indicating short-term uncertainty. A breakdown below the $108,000 level could intensify forced selling and lead to further price erosion. Conversely, a sustained move above $112,000 could trigger short squeezes and potentially push the price toward $114,000 [3]. Coinglass’s liquidation heatmap highlights these key levels, with both long and short positions concentrated in zones that could see significant volatility if tested [3].

Looking ahead, market participants are closely monitoring the upcoming U.S. jobs report, which could influence the Federal Reserve’s interest rate policy and, by extension, Bitcoin’s trajectory. With expectations leaning toward a 25 basis point rate cut at the September meeting, there is potential for a broader macroeconomic shift that could impact risk-on assets [1]. However, analysts remain cautious, as historical data and fractal cycle patterns suggest that October could be a pivotal turning point for Bitcoin’s direction, with either a sharp surge or a steep correction on the table [3].

The Bitcoin-to-stablecoin reserve ratio on Binance, a key indicator of market sentiment, has recently approached parity, a level historically associated with market bottoms [3]. While this could signal a potential support level, it may also indicate the early stages of a larger correction. The current neutral to mildly greedy sentiment, as reflected in the CoinGlass Fear and Greed Index, underscores the delicate balance between optimism and caution in the market [3].

Source: [1] Bitcoin analysts see a 'massive' move as BTC price regains ... (https://cointelegraph.com/news/bitcoin-analysts-see-massive-move-btc-price-regains-112k) [2] If BTC falls below $105710, the cumulative long liquidation ... (https://www.chaincatcher.com/en/article/2203523) [3] If Bitcoin Price Collapses, How Low Will It Go? (https://99bitcoins.com/news/bitcoin-btc/if-bitcoin-price-collapses-how-low-will-it-go/)