Bitcoin (BTC) is undergoing a volatile correction after $40.5 million in long positions were liquidated within 24 hours, pushing prices below key support around $111,000. The sell-off, triggered when BTC failed to break $114,000, has reduced market leverage and speculation, potentially setting the stage for a more sustainable recovery.
Despite the shakeout, Bitcoin’s fundamentals remain strong. Institutional and regulatory support continues to grow—most notably, the EU’s approval of Swiss app Relai under MiCA, enabling regulated Bitcoin investment services across Europe, and JPMorgan’s new crypto-collateral lending program, which allows clients to borrow against BTC and ETH holdings without selling them. Both developments enhance Bitcoin’s institutional legitimacy and utility.
Technically, BTC is consolidating within a symmetrical triangle between $109,700 support and $114,100 resistance. The 20-day EMA crossing above the 50-day EMA and an RSI around 60 indicate improving sentiment. A breakout above $114K could trigger an upside move toward $117K–$125K, while a breakdown below $111K might prompt a retest of $109K–$106K.
Overall, the liquidation-driven pullback appears to be a healthy reset rather than a trend reversal. If bulls regain control above $114K, Bitcoin’s Q4 rally toward $120K–$125K remains firmly on the table.