Bitcoin Price Holds Steady Near $113,000 After Recent Drop
Bitcoin (BTC) price stabilized around $113,000 on Tuesday. This followed a 2.24% drop on Monday. The recent fall caused a large liquidation in the crypto market, the biggest single-day loss this year. US-listed spot Bitcoin ETFs saw an outflow of $368 million on Monday, adding to the bearish sentiment. Technical analysis points to a continued correction, with a possible dead-cat bounce forming on the 4-hour chart.
Major Long Liquidations Hit Crypto Market
Bitcoin started the week with a price drop, falling to $111,478 during Tuesday’s Asian session. Data from Coinglass shows this led to the largest single-day liquidation in the crypto market this year. Long positions worth $1.65 billion were liquidated, compared to $145.83 million in shorts. This shows traders were overly bullish.
For Bitcoin alone, $285.92 million in long positions were liquidated, the highest since mid-June. Short positions lost $15.14 million. Despite this, CryptoQuant reports Bitcoin’s Estimated Leverage Ratio (ELR) at 0.286 on Tuesday. This is near the yearly high of 0.291 but below the all-time peak of 0.358 in 2011. This suggests traders are moderately leveraged, not overly exposed.
Spot Bitcoin ETFs See Large Outflows
US-listed spot Bitcoin ETFs recorded outflows of $368.17 million on Monday, the largest since mid-August, according to SoSoValue data. Analysts at Bitfinex told FXStreet that Bitcoin is consolidating near $112,000 this week after ETF outflows of about $363 million.
If ETF flows stabilize and funding stays neutral, Bitcoin could retest $115,000 by week’s end. However, if key support breaks, prices may fall toward $108,000. Analysts expect Bitcoin to trade between $115,000 and $118,000 by late September if US inflation data shows easing and the Federal Reserve signals more stimulus. In a bearish case, Bitcoin could drop to $104,000–$106,000 if inflation stays high and ETF outflows continue.
Corporate Bitcoin Demand Remains Strong
Despite recent price drops, some companies continue buying Bitcoin. Strategy added 850 BTC on Monday, raising its total to 639,835 BTC. Japanese firm Metaplanet bought 5,419 BTC, now holding 25,555 BTC. Europe’s Capital B added 551 BTC, totaling 2,800 BTC in reserves.
Shawn Young, Chief Analyst at MEXC, told FXStreet that crypto equities also fell despite new purchases. He said this shows investor caution until market direction and macro conditions become clearer. He added that liquidation events help clear excess leverage and set the stage for new price moves.
Technical Outlook: Possible Dead-Cat Bounce
On the 4-hour chart, Bitcoin broke below an ascending trendline and the 50-day Exponential Moving Average (EMA) on Sunday. It dropped 2.24% on Monday but recovered slightly to about $112,900 on Tuesday.
This pattern suggests a dead-cat bounce—a short price rise during a larger downtrend. Bitcoin may face resistance near $114,790, which aligns with the 50% Fibonacci retracement level. If it fails to break this level, Bitcoin could fall toward daily support at $107,429.
The 4-hour Relative Strength Index (RSI) is at 36, just above oversold levels. This indicates a possible short-term recovery before the downtrend continues.
On the daily chart, Bitcoin broke below support at $116,000 last Friday and closed below the 50-day EMA at $113,898 on Monday. The daily RSI is 45, below neutral 50, signaling bearish momentum. The MACD indicator also gave a sell signal on Monday. If Bitcoin fails to rise above the 50-day EMA, the price could drop further to $107,245. However, a recovery could push Bitcoin back toward $116,000 resistance.
