Bitcoin slipped below the $115,000 level on Tuesday as the crypto market faced nearly $961 million in leveraged liquidations. The sudden sell-off followed an extended rally to new all-time highs above $124,000 last week, raising fears of a deeper correction toward the $110,000 support zone.
Data from CoinGlass revealed that long positions accounted for the majority of the liquidations, highlighting the overleveraged state of the market. More than 60% of BTC/USDT perpetual contracts remain long-biased, leaving traders exposed to cascading liquidation risks if prices fall further.
Bitcoin’s weekly chart shows a rising wedge formation, a pattern often preceding bearish reversals. Analysts warn that a breakdown from this structure could send BTC tumbling as low as $88,000, nearly 26% below current levels.
Adding to the caution, Bitcoin’s RSI has formed a descending channel, indicating weakening momentum despite recent price gains.
Beyond technicals, Bitcoin’s trajectory hinges on upcoming Federal Reserve events.
Investors are closely watching the release of Fed minutes and Chair Jerome Powell’s speech at the Jackson Hole Symposium. A hawkish tone from Powell could dampen hopes for a September rate cut, potentially accelerating Bitcoin’s decline.
While some market watchers view the pullback as healthy consolidation, others warn of a flash crash scenario fueled by excessive leverage and false bullish signals.
If bearish patterns play out, Bitcoin could retest $110,000 or lower in the near term, especially if macroeconomic headwinds persist.
For now, Bitcoin trades around $115,000, with the next decisive move likely tied to Fed policy updates and investor appetite for risk.
Cover image from ChatGPT, BTCUSD chart from Tradingview
