Bitcoin News Today: Bitcoin Dips 2.5% After Galaxy Digital's $1.18B BTC Sale Triggers Liquidations

Bitcoin’s price movements have drawn heightened scrutiny amid a volatile market environment, with analysts and traders parsing technical indicators and whale activity to gauge the cryptocurrency’s near-term direction. The digital asset recently dropped from a 24-hour high of $119,000 to $115,000, a 2.5% decline, as selling pressure intensified following a $1.18 billion BTC sale by Galaxy Digital and a $370 million USDT withdrawal [1]. Market expert Captain Faibik has highlighted the $113,000 level as a critical support threshold, warning that a breakdown could trigger a sharper decline and a Bearish PO3 model that risks misleading bullish signals [1].

The sell-off has exacerbated leveraged positions, with $585 million in longs liquidated in a single session as traders grappled with a sudden market downturn [2]. This "leverage flush" followed aggressive moves by market makers targeting late long positions in altcoins, particularly after Ethereum (ETH) and Dogecoin (DOGE) experienced significant losses [2]. Meanwhile, weekend liquidity constraints and low-volume periods have amplified the impact of large wallet interventions, with Galaxy Digital’s actions alone causing a 3% hourly price drop [1].

Technical analysis underscores the precariousness of Bitcoin’s current consolidation. A sustained close below $113,000 could challenge the $100,000 psychological barrier, according to Faibik, while broader market sentiment remains mixed. The Crypto Fear & Greed Index reported a "Greed" score of 70, reflecting lingering optimism despite recent turbulence [2]. However, $3.07 billion in short positions face liquidation risks should Bitcoin rebound to $119,500 [2].

Price forecasts diverge, with some analysts predicting a drop to $111,000 [5], while others see potential for a consolidation breakout toward $200,000 [6]. Galaxy Digital CEO Michael Novogratz has projected Ethereum could reach $4,000, a 9.8% gain from its current level, and Bitfinex analysts suggest Bitcoin’s next target is $136,000 if the uptrend persists [2]. A wave count analysis posits no major correction until Bitcoin reaches $164,000, with a long-term target near $237,200 [4].

The market’s next moves hinge on institutional activity and regulatory developments, as well as Bitcoin’s ability to defend key support levels. A sustained decline below $115,000 could signal a broader bearish scenario, while a rebound to $119,000 might reignite bullish momentum. Traders remain cautious, balancing profit-taking and hedging strategies amid the extended consolidation around $120,000 [7]. With liquidity building between $113,000 and $115,000 [3], the interplay of technical resistance and leveraged positions continues to shape the cryptocurrency’s trajectory.

Source:

[1] [Bitcoin’s Next Steps: Will Prices Tumble?](https://coinmarketcap.com/community/articles/68836153d9d19935252ecdb0/)

[2] [Bitcoin tumbles below $116K in bloodbath for crypto longs](https://cointelegraph.com/news/crypto-longs-liquidated-market-downturn-bitcoin-price-decline)

[3] [Crypto price today: Bitcoin slips below $116000 amid liquidations](https://m.economictimes.com/markets/cryptocurrency/crypto-news/crypto-price-today-bitcoin-slips-below-116000-amid-liquidations-solana-xrp-fall-up-to-5/articleshow/122902943.cms)

[4] [Bitcoin (BTC) Price Is Down 3% Today but a Strong Recovery Imminent](https://www.ccn.com/analysis/crypto/bitcoin-btc-price-is-down-strong-recovery-imminent/)

[5] [Bitcoin Breakdown? BTC Price Analysis Warns of Sharp Drop Below $111K](https://cryptopotato.com/bitcoin-breakdown-btc-price-analysis-warns-of-sharp-drop-below-111k/)

[6] [Bitcoin (BTC) Price Prediction: Eyes $200K as Correction Sets the Stage](https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-eyes-200k-as-correction-sets-the-stage-for-next-breakout)

[7] [Bitcoin Breakdown? BTC Price Analysis Warns of Sharp Drop Below $111K](https://cryptopotato.com/bitcoin-breakdown-btc-price-analysis-warns-of-sharp-drop-below-111k/)