Bitcoin experienced a sharp decline to $117,914, driven by significant liquidations near a key resistance zone. Approximately $47.5 million worth of leveraged positions were forcibly closed during the drop, concentrated largely in the $118,000 to $119,000 price range where high leverage made long positions particularly vulnerable.
Analysis of liquidation heatmaps confirms dense clusters of long positions in the $118K-$119K range, coinciding with strong overhead resistance extending to $120,600.
While Bitcoin faced downward pressure, market dynamics indicate a potential rotation, with capital flowing towards Ethereum and altcoins.
Data shows Bitcoin’s market dominance has decreased by 4.98% over the past month, while Ethereum’s share has increased by 2.98%.
Despite the pullback, the underlying bullish structure remains unbroken.
Technical analysts emphasize that a decisive break above $119,500 is crucial for triggering Bitcoin’s next potential rally phase, which could target levels near $135,000.
Improving macroeconomic signals from the Federal Reserve, suggesting potential rate cuts, could further bolster risk appetite and offer support to Bitcoin prices in the near term.