Bitcoin price breaches the 113,000 USD support line! 467 million liquidation wave triggers market panic.

The price of Bitcoin broke below the key support of $113,000 on October 14, wiping out a 4% pump on Sunday and triggering a chain collapse of alts. In the past 24 hours, the liquidation amount in the crypto market exceeded $467 million, with long positions losing up to $277 million, and the number of open contracts in the derivation market continues to shrink.

Bitcoin fall triggers technical crisis signals

(Source: Trading View)

Bitcoin's price encountered strong selling pressure after reaching the 50-day Exponential Moving Average (EMA) of $115,508, failing to hold this key dynamic support. As of the time of writing, BTC has fallen below the 100-day EMA of $113,501 and is currently struggling around $112,500, continuing a three-day pullback trend that includes a single-day fall of 7% from last week.

The recent fall in Bitcoin is not merely a price correction, but a structural adjustment accompanied by the simultaneous weakening of multiple technical indicators. The Relative Strength Index (RSI) on the daily chart has slipped from the midline to 44, indicating a significant weakening of momentum, and there is still downward space towards the oversold area at 30, suggesting that the selling pressure may not have been fully released yet.

What makes long positions even more worried is the change in the Moving Average Convergence Divergence (MACD) indicator. After forming a death cross with the signal line last Friday, this indicator is now rapidly approaching the zero axis. If the MACD falls below the zero line, it will officially confirm that the mid-term trend has shifted from bullish to bearish, which may trigger a larger-scale technical sell-off.

Key Support and Resistance Level Analysis

Current support and resistance levels faced by Bitcoin price:

Support level below:

First line of defense: $109,561 (Saturday low)

Second line of defense: $108,027 (200-day EMA)

Key psychological level: $107,429 (July 8 low)

If the support at 109,561 dollars is lost, the price of Bitcoin may accelerate down to the 108,000 dollar range. This area is a convergence of the 200-day moving average and previous low points, forming the last line of defense. Once a complete collapse occurs, the 100,000 dollar round number will be put to the test.

Resistance level above:

Recent resistance: $115,508 (50-day EMA)

Rebound target: $120,000 (round number)

Only when BTC re-establishes itself above $115,508 and maintains stability can the "dead cat bounce" theory be negated, opening up the possibility of challenging $120,000. However, under the current dominance of selling pressure, the likelihood of this scenario being realized is relatively low.

alts are bleeding heavily, liquidation data reveals market panic

(Source: Coinglass)

The fall of Bitcoin has always been a disaster signal for alts, and this time is no exception. Mainstream coins have completely collapsed:

Ethereum (ETH): fall of more than 3%

Solana (SOL): fall of over 3%

Ripple (XRP): fell more than 3%

Due to the smaller market capitalization and poorer liquidity of alts, they often exhibit an amplified effect during market fluctuations. A 3% pullback in Bitcoin may translate to a 5-10% crash in alts, and this "leverage effect" exposes altcoin holders to higher risks.

According to CoinGlass data, the liquidation situation in the crypto market over the past 24 hours shows a sharp deterioration in market sentiment:

Total liquidation amount: 467.13 million USD

Long positions liquidation: 276.9 million USD

Short Position Liquidation: 190.23 million USD

Long positions losses far exceed short positions by nearly 45%, confirming that this wave of Bitcoin's decline is a one-sided sell-off rather than a two-way violent fluctuation. With nearly 500 million dollars in liquidation scale, it wiped out the market's emotional recovery from the previous days, resetting investor confidence to its original state.

High Leverage Traders Suffer Heavy Losses

Liquidation mainly occurs in over-leveraged long positions. When the Bitcoin price quickly breaks below key support, it triggers a chain liquidation mechanism:

Initial fall: BTC fell below $113,000 triggering the first batch of liquidations

Accelerated decline: Liquidation triggers additional selling pressure, driving prices further down.

Panic spreads: More leveraged positions are being liquidated, forming a negative spiral.

This "clearing cascade effect" is particularly common in the crypto market and is one of the main reasons for the sharp price fluctuations. High leverage traders enjoy amplified returns while also bearing the extreme risk of being instantaneously wiped out.

Derivation market shrinkage reflects hedging sentiment

(Source: Coinglass)

More concerning than the clearing data is the continued contraction of the derivation market. This indicates that institutions and professional traders are actively withdrawing from the market and adopting a wait-and-see attitude.

The overall open interest (OI) in the cryptocurrency market is currently $163.59 billion, a decrease of 0.72% over the past 24 hours. The open interest in Bitcoin futures has fallen even more, down 1.50%, maintaining at $73.68 billion.

Market Implications of Shrinking Open Contracts:

Capital outflow: Traders are closing positions and exiting rather than establishing new ones, leading to capital leaving the market. Lack of confidence: Professional investors lack clear judgment on short-term trends and choose to reduce exposure. Deteriorating liquidity: Market depth is shallow, and large single transactions are more likely to trigger severe price fluctuations.

As the clearing volume rises, OI continues to decline, forming a dangerous combination of "high volatility + low participation." In this environment, Bitcoin prices are more susceptible to manipulation by whales or sudden news, and retail investors face higher uncertainty.

Market Outlook and Risk Management Recommendations

The current Bitcoin price trend is at a critical turning point. Multiple technical indicators are weakening, liquidation pressure continues, and institutional funds are exiting. The triple bearish factors make it difficult to see a strong rebound in the short term.

Investors should closely monitor the following variables:

US economic data: CPI and employment reports will affect Fed policy expectations

On-chain transfer direction: Are miners and whale wallets transferring a large amount of BTC to exchanges?

Stablecoin inflow: Is the net inflow of USDT and USDC bottom-fishing capital or a hedging exchange?

Derivation funding rate: If it turns into deep negative values, it may indicate an over-concentration of short positions.

Risk Management Suggestions:

Avoid high leverage: The current volatile environment is prone to triggering liquidation.

Set Stop Loss: Protecting Principal Takes Precedence Over Pursuing Profit

Partial Position Building: If you are optimistic about the long-term trend, you can gradually invest in the range of 100,800 to 110,000 USD.

Hold coins and wait: Do not operate during uncertainty, wait for clear signals before entering.