The Bitcoin price slipped after a failed push above $116,000, triggering roughly $125 million in liquidations and a fresh bout of risk-off across altcoins.
The pullback follows last week’s tariff-driven shock and Monday’s fade from resistance, with traders eyeing whether the dip sets up the next leg higher, or a deeper test of support.
Short-term, $111,000 has emerged as an initial demand zone, with deeper supports clustered near $110,000 and the psychological $105,000–$108,000 band. A decisive daily close back above $116,000 would reassert bullish control and put the prior high back in focus.
Macro headlines continue to frame intraday swings. Tariff uncertainty recently amplified volatility across risk assets, though a softer tone from both Washington and Beijing has tempered worst-case fears. That shift helped stabilize crypto broadly, but BTC’s latest rejection shows bulls still need a clean catalyst to reclaim the trend.
On-chain and social gauges flash a familiar pattern: retail FUD peaked into the drop while “smart money” accumulated, according to market analysts.
Santiment’s Brian Q. noted that spikes in negative retail sentiment have repeatedly preceded short-term reversals this cycle, from spring tariff scares to summer geopolitical headlines.
Several technicians also highlight a bullish MACD cross on higher time frames, a setup that appeared before previous alt-season advances, even as near-term chop persists.
Strategists point to improving market structure after the liquidation sweep: lower funding, cleansed leverage, and still-elevated spot participation. That mix often precedes range rebuilds and trend continuation, provided key supports hold and macro rhetoric doesn’t re-ignite broad de-risking.
Key technical levels remain clear for traders. Immediate support is seen between $110,500–$111,000, followed by a deeper cushion at $110,000. A decisive close above $116,000 would confirm renewed bullish momentum, while a drop below $110,000 could expose Bitcoin to the $105,000–$108,000 range.
Cover image from ChatGPT, BTCUSD chart from Tradingview
