Bitcoin News Today: Bitcoin's $114K standoff: Short squeeze vs. whale selling pressure looms

Bitcoin's price action has drawn renewed attention as traders anticipate a potential rebound following a 4% correction from recent all-time highs. The cryptocurrency has consolidated near $114,000, a level flagged by analysts as a critical support zone amid growing liquidity inflows and speculative positioning Cointelegraph^[1]. Derivatives data from CoinGlass reveals thickening bid-ask spreads, suggesting market participants are preparing for short-term volatility Cointelegraph^[1].

The price correction has been attributed to "predatory" trading behavior, as highlighted by prominent trader Skew, who noted large-volume actors manipulating order books on platforms like Binance and Coinbase. These tactics, including spoofing bids and asks, aim to temporarily distort price action and trigger forced liquidations Cointelegraph^[1]. Despite the downward pressure, recent inflows indicate a partial recovery in liquidity, with market observers cautioning that the current consolidation may signal a temporary range-bound phase before further directional movement Cointelegraph^[1].

On-chain metrics reinforce the significance of the $114,000 level. Analyst ZYN identified a cluster of 190,000 BTC bought near $117,000 as a potential floor, where "strong buyers defending entries" could stabilize the price Cointelegraph^[1]. Meanwhile, Material Indicators emphasized the 50-day simple moving average (SMA) at $114,000 as a foundational support zone, suggesting a "very real floor forming" if the price retreats further Cointelegraph^[1].

A short squeeze scenario is also in play, with leveraged positions concentrated around the $113K-$114K range. According to Alphractal, this cluster of short positions could trigger rapid buying pressure if Bitcoin surges through the resistance zone, though analysts caution that the move may represent a local peak rather than a sustained breakout Alphractal^[2]. Open interest at these levels underscores the fragility of the current rally, with a potential stalling of upward momentum expected if bears regain control Alphractal^[2].

The risk of cascading liquidations looms large should Bitcoin breach key thresholds. Coinglass data indicates $657 million in long liquidations could materialize if the price falls below $114,000, while a move above $116,000 might trigger $210 million in short liquidations. This $114K–$116K range has become a critical battleground, with whale selling activity adding to structural supply pressure Coinpedia^[3].

Institutional and retail dynamics are further complicating the outlook. Whale holders of 1,000–10,000 BTC have sold over $13 billion in Bitcoin in the past 30 days, the largest such wave since July 2022 Coinpedia^[3]. Meanwhile, ETF inflows have slowed to an average of 500 BTC per day, reducing the cushion against bearish pressure. Analysts like Doctor Profit advise caution, noting that liquidity "sits lower, between $106K and $90K," where a deeper correction could unfold if selling persists Coinpedia^[3].

The interplay of technical indicators and market sentiment highlights the precarious balance. Bitcoin's relative strength index (RSI) has entered "oversold" territory, a condition last seen during the February trade war turmoil. Skew and other traders observe that while passive buying is evident, exchange spreads remain wide, indicating market makers are assessing damage before liquidity fully returns Cointelegraph^[4].