** BTC Technical Breakdown: Major Support Test Looms as Bitcoin Battles $112K Resistance

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Bitcoin Market Update: Key Highlights

• Latest BTC price: $111,800.94 (24h: +2.28%)
• Massive $1 billion long liquidation triggered last week’s crash to $112,000
• Asian markets rise while dollar weakness provides crypto tailwinds
• Bitcoin’s RSI at 46.24 signals neutral momentum with room for movement

Breaking: Recent Developments Affecting BTC

Bitcoin’s dramatic price drop to $112,000 on September 22 marked a pivotal moment for 2025, triggering the year’s largest long position liquidation event worth over $1 billion. This massive deleveraging forced overleveraged traders out of positions and created significant downward pressure on the BTC price across major exchanges.

The liquidation cascade began when Bitcoin broke below key psychological support around $113,000, accelerating the selloff as automated trading systems and margin calls kicked in. Trading data from Binance spot markets showed exceptional volume during this period, with the BTC/USDT pair experiencing its highest single-day activity in months.

Market conditions have since stabilized, with external factors like potential U.S. government shutdowns having minimal direct impact on cryptocurrency prices. Asian stock markets rising today suggests improved risk appetite, which historically correlates with positive Bitcoin price movement during uncertainty periods.

How Traders Are Reacting to Bitcoin News

Professional traders are cautiously optimistic following Bitcoin’s recovery from last week’s lows. The 24-hour trading volume of $1.06 billion on Binance spot indicates sustained interest despite recent volatility. Many institutional players view the liquidation event as a healthy market correction that removed excessive leverage from the system.

Options market activity suggests traders are positioning for potential upside moves, with call option volume increasing significantly over the past 48 hours. However, the memory of September’s crash remains fresh, leading to more conservative position sizing among retail participants.

The current BTC price action shows Bitcoin attempting to reclaim territory above its 20-day simple moving average of $113,953, which now acts as immediate resistance. This level coincides with the upper range of recent consolidation, making it a critical technical hurdle for bulls to overcome.

BTC Price Action: Technical Perspective

Bitcoin technical analysis reveals a mixed picture with the cryptocurrency trading below most key moving averages. The BTC price currently sits between the 7-day SMA at $111,077 and the 20-day SMA at $113,953, indicating short-term consolidation after the recent volatile period.

Bitcoin’s RSI reading of 46.24 places it firmly in neutral territory, suggesting neither overbought nor oversold conditions. This provides flexibility for price movement in either direction, depending on market catalysts. The BTC RSI has room to move higher before reaching overbought levels around 70.

Bitcoin support levels are clearly defined with immediate support at $108,620 and stronger support at $107,255. These levels align with previous consolidation zones and represent areas where buying interest historically emerged. On the upside, Bitcoin resistance appears at $117,900 with stronger resistance at $124,474, near Bitcoin’s 52-week high of $123,306.

The MACD indicator shows bearish momentum with the histogram at -413.35, though the negative reading is less severe than during the initial crash. Bitcoin’s daily ATR of $2,226 reflects elevated volatility, which traders should factor into position sizing decisions.

What’s Next for Bitcoin? Expert Analysis

Short-term outlook for Bitcoin hinges on whether the BTC price can establish itself above the $113,953 resistance level. Success in breaking this barrier could signal the end of the correction phase and potentially target the $117,900 zone. The overall bullish trend remains intact despite recent setbacks, supported by Bitcoin’s position well above its 200-day moving average at $104,581.

Risk factors include potential renewed selling pressure if Bitcoin fails to hold current support levels. The $108,620 support becomes critical, as a break below could accelerate selling toward the stronger $107,255 level. Traders should monitor Bitcoin support levels closely for signs of institutional buying or continued distribution.

Volume patterns suggest accumulation may be occurring at current levels, but confirmation requires sustained buying pressure. The upcoming week will likely determine whether Bitcoin can rebuild momentum or face additional downside pressure. Given the neutral BTC RSI reading, technical conditions support movement in either direction based on fundamental catalysts and broader market sentiment shifts.

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