TL;DR
- Bitcoin loses momentum after surpassing $115,000 and hovers around $113,000, with a 2% drop in 24 hours and over $1 billion in liquidations.
- Key support is near $109,000; however, low liquidity above $110,000 limits the immediate recovery.
- Ethereum grew nearly 50% in the last month, benefiting from capital rotation out of BTC.
Bitcoin is undergoing a correction as it loses strength after climbing above $115,000. The current price hovers around $113,000, registering a 2% decline in the past 24 hours. Since early August, BTC has retreated nearly $6,000, and more than $1 billion in liquidations have occurred amid growing macroeconomic uncertainty and reduced ETF activity.
What Are Analysts Saying?
Technical analysts point to the $109,000 level as possible short-term support. Liquidity data from platforms like Binance show limited buying interest above $110,000, restricting the room for a quick rebound. At the same time, the distribution of the average acquisition cost indicates many investors are holding their positions despite the pullback, especially those who entered between $118,000 and $120,000. This behavior could maintain stability at current levels but does not guarantee an immediate reversal.
The volume of short positions accumulated above the current price is also high. This creates the potential for a cascade of liquidations if the price suddenly rises. According to some metrics, almost 70% of open leveraged orders lie above the current price, which could fuel a rebound triggered by forced liquidations.
Meanwhile, Ethereum is gaining ground. Its price has risen nearly 50% over the past month, benefiting from capital rotating from Bitcoin to other cryptocurrencies. This dynamic shows a temporary shift in investor interest toward alternatives with higher short-term appreciation potential.
Is a Shakeout in the Bitcoin Market Imminent?
From a technical standpoint, Bitcoin faces resistance at the 200-period moving averages on the four-hour charts. Breaking through this level is necessary to regain bullish momentum. For now, the lack of clear direction calls for patience. Volatility remains low, but analysts agree that a strong move is imminent.
Despite the correction, Bitcoin has gained 23% so far in 2025, outperforming the stock market. Some forecasts remain bullish for the next twelve months, with targets above $200,000, though the path to those levels looks increasingly challenging
