Bitcoin Slides Below $113,000 as Long Liquidations Surge

Snapshot: sharp correction in Bitcoin

Bitcoin slipped to roughly $112,500, reversing from the 50‑day EMA (~$115,508) and undermining the 100‑day EMA (~$113,501). The move was accompanied by large long liquidations (approximately $276.9M) versus $190.2M in short liquidations, and a drop in futures open interest—signals that a short‑term unwind is underway.

What happened and why it matters

Recent price action shows a clear rejection around the 50‑day EMA after a multi‑week advance, triggering stop runs and margin liquidations. The combination of risk‑off flows tied to broader macro headlines—including renewed US‑China trade tensions and geopolitical uncertainty—contributed to the sell‑off as investors reduced risk exposure.

Key technical levels

Traders should watch the following zones:

- Immediate resistance: 50‑day EMA near $115,500 and the 100‑day EMA near $113,500.
- Near support: $109,561 (recent Saturday low).
- Stronger structural support: 200‑day EMA (~$108,027) and the July low at ~$107,429.

Risks and likely scenarios

Bear case: Continued selling could push Bitcoin toward the $109.6k–$107.4k support zone. Falling open interest and outsized long liquidations increase the risk of cascade selling, which would pressure altcoins and derivatives markets.

Bull case: Reclaiming and holding above the 50‑day EMA (~$115.5k) would reduce the immediate bearish bias and could set the stage for a retest of $120,000. Longer‑term institutional demand—highlighted by large managers planning spot ETPs in Europe—remains a structural bullish factor.

Trading ideas and risk management

Short‑term traders: consider disciplined, size‑limited trades with tight stops. Mean‑reversion scalps may work if volume and open interest stabilize; otherwise, fading sharp down moves can be risky during active liquidations.

Swing traders: look for confirmation—daily close above the 50‑day EMA for a momentum reset, or clear support holds at the 200‑day EMA region before adding larger positions. Always size positions to account for heightened volatility and the potential for rapid stop runs.

Execution & automation: for active crypto trading and systematic execution consider an automated setup to manage entry, stop placement and position sizing. Tools such as a dedicated Bitcoin Trading Bot or a Binance Trading Bot can help implement tight risk rules, while a Trade Assistant Bot can provide alerts and signal confirmation.

Macro cross‑markets to monitor

Broader risk aversion driven by US‑China tariff escalation and geopolitical headlines is pushing safe havens higher (gold and the yen) and pressuring risk assets. Traders should monitor USDCNH, USDJPY and XAUUSD for spillovers that can amplify crypto volatility. A sudden relief in trade tensions or a strong institutional inflow (such as a large ETP launch) could quickly reverse risk sentiment.

Positioning checklist

- Confirm stop levels before taking new longs; use the $107k–$109.6k range as reference for larger support bids.
- Watch futures OI and liquidation metrics—declining OI with outsized long liquidations signals caution.
- Keep an eye on liquidity events and macro headlines; have contingency exit rules for sudden volatility spikes.

Conclusion

Bitcoin's drop below $113k is a technical correction amplified by liquidations and risk‑off sentiment. Short‑term traders should respect the downside momentum and protect capital; medium‑term investors should balance the near‑term volatility against structural tailwinds from institutional adoption. Whether you trade manually or with automation, disciplined risk management is essential in this environment.

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