Bitcoin’s price pullback triggered over $300 million in liquidations, sparking caution among traders ahead of this week’s critical Fed commentary.
Key Takeaways:
- A modest decline in Bitcoin led to more than $300 million in positions being liquidated, according to DeCrypt and CoinGlass data.
- Real-time technical indicators show BTC trading at $115,350, down ~2.8%, with its RSI at heavily oversold territory.
- All eyes now turn to Federal Reserve Chair Jerome Powell’s upcoming speech, viewed as pivotal in steering the next phase of the crypto bull market.
After its recent milestone of rallying to new all-time highs last week, Bitcoin, the largest cryptocurrency, experienced a sharp retracement losing 2.6% over the past 24 hours, erasing recent gains and wiping out over $300 million in liquidations, according to Decrypt while citing CoinGlass data. The sharp moves appear driven by profit-taking rather than a shift to bearish sentiment, yet they underscore the precariousness of leveraged positions in today’s volatile environment.
Technical Indicators Flash Oversold Warnings
As of this writing (1:00 PM UTC), Bitcoin (BTC) is trading at approximately $115,350, climbing from an intraday low of $114,742 to a high of $118,519, reflecting about a 2.8% decrease from the previous close.
Technical indicators from Investing.com show the RSI (14) at 23.6, signaling oversold conditions. Stochastic RSI and MACD also sit in strong sell territory, spotlighting heightened short-term risk.
Analysts Cautious Ahead of Fed Policy Signals
CryptoQuant head of research Julio Moreno told Decrypt that crypto traders are becoming more risk-averse, noting they are “taking a cautious approach” as they await macro developments, particularly Fed policy. Derive’s Sean Dawson added he anticipates a “slow down” in flows to BTC and ETH, potentially coinciding with Fed Chair Powell’s speech on Friday.
Crypto Market Momentum Fades After Record Highs
Bitcoin’s recent slide follows a steep ascent to ATHs above $124,000 just days ago, powered by pro-crypto U.S. policy shifts (retirement account access) and Fed rate-cut optimism.
That rally was short-lived: BTC slipped to ~$119,200 Friday, with $1B+ in leveraged liquidations then, before this new $300M wave. The pullback leaves BTC down 7–8% from its peak.
What’s Next
Bitcoin’s $300M liquidation dip highlights its sensitivity to macro catalysts. With RSI deeply oversold, a rebound is possible, but downside risk remains. Traders now await Powell’s Fed speech for direction—whether BTC stabilizes for another leg higher, or slides closer to deeper supports.
Summary
Bitcoin fell to $115,350, triggering ~$300M in liquidations, as oversold technicals and fading Fed cut hopes rattled markets. With RSI at ~23 and momentum weak, near-term direction hinges on Jerome Powell’s upcoming speech.
The retracement follows BTC’s swift rise to $124K, showing the fragility of leveraged positioning. While conditions are oversold and could favor a bounce, risks remain if Fed commentary tempers easing expectations. The $115K–$114K zone is now a key support band to watch.
