The price of Bitcoin fell after a failed push above $116,000, leading to the liquidation of about $125 million and triggering a new round of risk-off into altcoins.
The pullback comes after last week’s tariff-driven shock and resistance fell on Monday, with traders keeping an eye on whether the decline leads to the next leg higher, or a deeper test of support.
Bitcoin Price Rejects at $116K, Liquidations Flush Leverage
After rallying more than $15,000 from weekend lows, Bitcoin price stalled near $111,500, a level that has repeatedly attracted seller interest and profit-taking. As prices tumbled, a wave of long liquidations followed in the derivatives venues, liquidating overleveraged positions and freezing excess funding.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Short-term, $111,000 has emerged as an initial demand zone, including deep support near $110,000 and the psychological $105,000-$108,000 band. A decisive daily close above $116,000 would reestablish bullish control and bring prior highs back into focus.
Macro headlines continue to frame intraday swings. Tariff uncertainty has increased volatility in risk assets recently, although the dovish tone from both Washington and Beijing has eased fears of a worst-case scenario. That turnaround helped stabilize the crypto broadly, but BTC’s latest rejection shows that bulls still need a clean catalyst to recapture the trend.
Emotion Surrender: “Fear Buy” Signal?
According to market analysts, on-chain and social gauges reflect a familiar pattern: retail FUD declined while “smart money” accumulated.
Sentiment’s Brian Cue notes that increases in negative retail sentiment have been preceded by repeated short-term reversals this cycle, from spring tariff scares to summer geopolitical headlines.
Many technicians also highlight a bullish MACD cross on higher time frames, a setup that appeared before previous alt-season advances, even if near-term downside remains.
Strategists point to improvements in market structure following the liquidation sweep: less funding, lower net leverage, and still-increased spot participation. This mix often precedes range reestablishment and trend continuation, provided key supports hold and macro rhetoric does not re-ignite widespread de-risking.
what to look forward to
Key technical levels remain clear for traders. Immediate support is seen between $110,500-$111,000, followed by a deeper support 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.
Beyond Bitcoin price action, attention turns to Bitcoin ETF net inflows and stablecoin liquidity, indicating broad market participation. Continued inflows will strengthen the buy story on dips, while macro factors like tariff headlines or surprise data could still trigger volatility.
Cover image from ChatGPT, BTCUSD chart from TradingView
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