Bitcoin Price Falls Below $113,000
Bitcoin (BTC) price dropped below $113,000 on Tuesday. This erased the 4% gains made on Sunday. The sell-off also affected top altcoins. Ethereum (ETH), Ripple (XRP), and Solana (SOL) all fell by more than 3%. The derivatives market is tense. Open Interest remains low, while liquidations are increasing, pushing more money out of the market.
Bitcoin Faces Risk of Further Decline
Bitcoin reversed its trend near the 50-day Exponential Moving Average (EMA) at $115,508. This raises the risk of extending last week’s correction, which included a 7% drop on Friday. At press time, BTC is near $112,500, below the 100-day EMA support at $113,501.
Technical indicators show rising selling pressure. The Relative Strength Index (RSI) dropped to 44, moving away from the midpoint. This suggests more room for a price drop before reaching oversold levels. The Moving Average Convergence Divergence (MACD) is close to the zero line after a bearish crossover on Friday. If MACD falls below zero, it could signal stronger downward momentum.
Key support levels are $109,561 (Saturday’s low), followed by the zone between the 200-day EMA at $108,027 and the July 8 low at $107,429. If Bitcoin rises above the 50-day EMA at $115,508, it could reverse the current downtrend and aim for $120,000.
Altcoins Drop Amid Rising Liquidations
Altcoins are also under pressure as Bitcoin falls. Ethereum, Solana, and XRP dropped over 3% on Tuesday. Usually, a Bitcoin correction leads to a broader market pullback.
Data from CoinGlass shows long position liquidations at $276.90 million in the last 24 hours. Short liquidations were $190.23 million. Total liquidations reached $467.13 million, nearing the $500 million mark. This wiped out recent gains in trader sentiment.
The overall cryptocurrency market Open Interest (OI) is $163.59 billion, down 0.72% in 24 hours. Bitcoin futures OI fell over 1.50% to $73.68 billion. A drop in OI usually means traders are exiting the market and waiting for clearer signals amid risk.
This combination of falling Open Interest and rising liquidations may cause more losses for altcoins.
