Bitcoin BTC is becoming vulnerable because it is below the critical level of the support of 115,200- an area which is the cost base of 95 percent of the BTC supply. After the Fed reduced the rate by 25bps, Bitcoin shot momentarily to $118,000 before falling drastically to approximately 112,600. This pullback points out that leveraged positioning is sensitive in the market.
Betting Zone of $105K to $115K Now Open.
This would risk a decline towards the bottom of the 85-95% cost basis range, analysts caution, at the loss of the $115k threshold, to a value of 105,500. This area may turn into one of the major battlefields where bulls and bears struggle over the right way. A drop to less than recovering of $115K may result in more downside.
Liquidations are a result of Futures Volatilities.
The recent actions of Bitcoin took place partially because of the intense futures trading. The volatility increased to an all-time high of 85.9 billion before it dropped down to 82.2 billion. Long liquidations have spiked up after the FOMC, turning the previous short squeezes into long ones and showing how the macro catalysts such as rate cuts affect crypto leverage.
It is Liquidity Returns, Yet But Not Uncertainty.
The data of cumulative Volume Delta indicates the transition of the heavy selling market to a more balanced one. This can be an indicator of stabilization but futures-based dynamics still prevail. Bitcoin needs to regain its on-chain supportive levels within a short period or it will experience another re-test with $105,500 as the next decisive area of demand.
