Bitcoin News Today: Bitcoin Falls Below $112,000 as $889M in Futures Liquidations Intensify Sell-Off

Cryptocurrencies are currently under significant market pressure as Bitcoin continues its downward trend, dipping below $112,000 and approaching $108,000. The decline has raised concerns among investors, particularly as repeated violations of key support levels suggest a broader shift in sentiment. The price action indicates increased selling pressure from large holders and a notable drop in inflows into spot ETFs, compounding the downward momentum [1].

Bitcoin’s recent performance is exacerbated by liquidation events in futures markets, which historically intensify price drops when open interest is high. Over the last 24 hours, $889 million in liquidations were recorded, highlighting the fragility of current market conditions. Ethereum, the second-largest cryptocurrency, also experienced a $287 million liquidation, further underscoring the severity of the sell-off [1].

While Ethereum is consolidating between $4,600 and $5,200, according to analyst forecasts, it has shown mixed technical signals. The RSI remains in a strong range without entering overbought territory, and the MACD continues to signal bullish momentum. However, a breach of $4,320 could lead to a sharper decline toward $4,084. The ETH/BTC pair is also under pressure, with the 0.044 level at risk of retreating toward 0.038, which could further pressure altcoins [1].

BNB, another major asset, tested all-time highs but reversed quickly after a $1 billion reserve announcement. The $824 support level is now critical for its recovery path. ADA, on the other hand, has lost its recent support at $0.844, indicating a potential drop to $0.76 or even $0.695. XRP, while more resilient, faces a possible pullback to $2.7 if the $2.82 level is breached [1].

Bitcoin’s struggle has not deterred institutional interest. Many funds have already allocated around 1% of their portfolios to the asset, and as regulatory clarity improves, further allocations are expected. The long-term narrative of Bitcoin reaching $1 million remains intact, supported by ETF inflows and broader macroeconomic developments [1].

However, the near-term outlook remains volatile. With whale activity intensifying and liquidity tightening, the market is bracing for a critical test below $105,000. Investors are closely monitoring for signs of stabilization or further deterioration. If the $108,000 level fails to hold, a broader correction could follow [5].

Sources:

[1] Bitcoin's $4K Flash Crash Exposes Market's Fragile Pulse

(https://www.ainvest.com/news/bitcoin-news-today-bitcoin-4k-flash-crash-exposes-market-fragile-pulse-2508/)

[2] BTC USD Falls As Ethereum Surges

(https://99bitcoins.com/news/bitcoin-btc/btc-usd-feels-the-pressure-as-big-players-shift-to-ethereum-whats-next/)

[3] Bitcoin at Risk of Further Decline as Analyst Warns

(https://www.ainvest.com/news/bitcoin-risk-decline-analyst-warns-hanging-thread-situation-2508/)

[4] Bitcoin 'Hanging By A Thread' Around $112,000, Analyst Warns

(https://finance.yahoo.com/news/bitcoin-hanging-thread-around-112-160208997.html)

[5] Bitcoin holders 'distribute' as $105K becomes BTC's last stronghold

(https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar1k-becomes-btc-s-last-stronghold)

[6] Crypto Prices Slide As Trading Heats Up Across Markets

(https://finimize.com/content/crypto-prices-slide-as-trading-heats-up-across-markets)