Key Takeaways
Bitcoin hovers near $115,000, with traders bracing for possible long liquidations.
Short positioning rises as markets prepare for the Fed’s first 2025 rate cut.
Gold surges to a record $3,703, extending its lead over Bitcoin in year-to-date performance.
Bitcoin Faces Leverage Pressure Around $115K
Bitcoin (BTC) traded around $116,594 at Tuesday’s Wall Street open, with analysts warning of heightened liquidation risk.
Data from Cointelegraph Markets Pro and TradingView showed BTC oscillating between $114,800 and $115,300 while surrounded by liquidity clusters above and below spot price.
Trading resource TheKingfisher flagged a “huge cluster” of long liquidations at $114,724, describing the area as “a lot of trapped longs.”
“This chart doesn’t predict the future, but it tells you where the pain is. And where the pain is, price movements often follow,” the firm noted.
The market has also seen leverage spike, leaving traders exposed to sudden downside volatility.
Traders Flip Short Into FOMC
Popular trader Skew highlighted persistent supply pressure, describing the market as “top side heavy with offloading into price.”
He noted that positioning decay was already visible ahead of the Sept. 17 FOMC decision, where the Federal Reserve is widely expected to deliver a 25 basis point cut.
“Short positioning is starting to pick up as the consensus trade going into FOMC,” Skew wrote.
The shift reflects broader caution across risk assets, with US equities slipping modestly lower on the day.
Gold Sets New Record at $3,703
While Bitcoin remains rangebound, gold surged to a new all-time high of $3,703 before correcting.
“Gold leads the way. Bitcoin follows,” trader Jelle commented, pointing to a recurring pattern of BTC lagging gold’s performance by several months.
So far in 2025, gold is up 40% year-to-date, outpacing Bitcoin’s 23% gain. Analysts argue both assets are “pricing in” looser monetary conditions as the Fed begins a new cutting cycle.
Outlook: Bitcoin Still Waiting for a Trigger
With BTC pinned below $117,000 resistance, traders see Wednesday’s FOMC decision as the decisive short-term catalyst.
If the Fed delivers a dovish surprise or confirms multiple rate cuts ahead, Bitcoin could attempt a breakout. Conversely, a rejection near $115,000–$114,700 risks cascading liquidations.
