Bitcoin Falls Below Key Risk Level
Bitcoin (BTC) has dropped below the 0.95 Cost Basis Quantile, a key risk band. This level often signals zones where investors take profits. The fall suggests weakening momentum. If Bitcoin does not quickly rise above this level, further price declines may follow.
Glassnode reports Bitcoin’s current price at $112,565, down 0.48% for the day. Trading volume has decreased to $49.5 billion, indicating less market conviction. Analysts warn that if Bitcoin fails to reclaim the 0.95 Cost Basis Quantile, it could move toward support zones between $105,000 and $90,000.
High Leverage and Liquidity Risks
Data from Coinglass shows many high-leverage long positions between $110,000 and $114,000. These include 50x and 100x leverage trades. Liquidity clusters have formed near $107,000, just below the current price. This creates downward pressure that could pull Bitcoin lower.
A drop into this liquidity zone may trigger mass liquidations. This would increase volatility in an already fragile market. The Binance BTC/USDT liquidation map highlights these risk areas clearly.
Market Overview and Outlook
- The global crypto market cap fell 0.52% to $3.89 trillion.
- Trading volume dropped over 10% to $163.97 billion.
- Bitcoin reached an all-time high of $124,457 on August 14.
- Since then, it has declined more than 10%.
Bitcoin now faces critical support levels. Without a quick recovery above the 0.95 Cost Basis Quantile, the price may test the $105,000 to $90,000 range. This zone has historically been important but could also lead to deeper liquidations.
Bitcoin price and market data remain key indicators for traders watching these levels.
