Bitcoin Net Liquidations Stay Negative Near $40M: Analyst Warns Downside Remains

Bitcoin Market Overview:

Bitcoin is stabilizing above $110,000 after a volatile period with significant liquidations across the crypto market.
The recent correction wiped out last week's gains, highlighting market volatility. Currently, BTC is near a key liquidity zone where bulls and bears are contending for control.

Market Sentiment and Analysis:

Market sentiment is cautious as traders consider potential further declines. Analysts suggest Bitcoin could test lower support levels if bearish momentum increases.
Analyst Axel Adler indicates medium risk of further bearish pressure due to ongoing long liquidations, which remain negative around −$40 million.
The Liquidation Intensity Z-Score is neutral to moderate, suggesting the absence of a large-scale selloff despite steady liquidation pressure.

Bitcoin Long Short Liquidations

Technical Insights:

Bitcoin is trading near $113,025, below its 50-day and 100-day moving averages, which act as resistance around $114,600–$115,000.
The 200-day moving average at approximately $115,077 reinforces this resistance barrier.
Temporary support is noted at $112,900; failure here may lead to further decline towards $110K and potentially $108K.

BTC testing critical support

Conclusion:

Current price action shows lower highs since rejection near $118K, indicating decreasing bullish strength.
As long as $110K holds, Bitcoin remains in a consolidation phase rather than a trend reversal.
Traders are observing if Bitcoin can regain the $115K level to signal renewed positive momentum.