Bitcoin Faces Sharp Correction Below $113,000
Bitcoin experienced a sudden price correction late Monday, falling below the $113,000 mark and triggering widespread liquidations across the futures market. According to data from Coinglass, more than $117 million worth of long positions were liquidated within just one hour.
The rapid decline followed a brief period of market optimism, during which BTC had attempted to consolidate above $115,000. However, increasing sell pressure and cascading liquidations contributed to the swift downturn.
Market-Wide Liquidations
The wave of forced liquidations didn’t stop at Bitcoin. Ethereum and several major altcoins also saw significant long position wipes, as traders over-leveraged in anticipation of a continued rally. Coinglass data shows total crypto market liquidations exceeding $160 million during the same hour, with the majority linked to Bitcoin futures.
Analysts suggest that the correction reflects a temporary shakeout rather than a structural breakdown, although volatility remains elevated.
Analysts React to Market Shock
Crypto analysts and traders on X (formerly Twitter) pointed out that such rapid liquidations are common during overheated market conditions. “Funding rates were extremely high, and open interest was near record levels — a reset was inevitable,” one trader commented.
Despite the pullback, many see this as a healthy correction within a broader uptrend. Bitcoin’s long-term momentum remains intact as institutional inflows and ETF demand continue to support the market.
What’s Next for Bitcoin
The immediate outlook depends on Bitcoin’s ability to recover and maintain support above $112,000. Failure to do so could trigger further liquidations, potentially testing the $110,000 level. However, if buying pressure resumes, BTC may quickly reclaim lost ground.
Traders are advised to monitor leverage ratios and open interest closely in the coming days, as volatility in the derivatives market remains a key driver of short-term price action.
