Bitcoin Drops Below $114,000 Amidst Liquidations and Market Fears
Bitcoin dropped 2.1% in the past 24 hours, tumbling below $114,000 as a perfect storm of liquidations, macro fear, and technical breakdowns rattled crypto markets. Over $1 billion in long positions were wiped out between August 1–2, triggering a cascade of automated sell orders and shaking investor confidence.
According to CoinGlass, open interest in Bitcoin futures surged nearly 18% before the drop—evidence of overcrowded long positions. Once prices began sliding, forced liquidations pushed BTC sharply lower. Contributing to the bearish backdrop was a disappointing July U.S. jobs report (only 79K jobs vs. 104K expected) and political turmoil after Donald Trump fired the Bureau of Labor Statistics (BLS) commissioner, spooking traditional and digital markets alike.
Technically, Bitcoin’s decline was accelerated after falling below several key levels: the 23.6% Fibonacci retracement at $119,364, the 7-day simple moving average at $117,165, and most critically, the support at $118,859. These breaches invalidated short-term bullish setups and triggered sell algorithms.
Market Indicators and Future Outlook
Momentum indicators further confirmed the weakening trend. The Relative Strength Index (RSI) cooled to 41.99, below neutral, while the MACD histogram dropped to -867, reflecting growing bearish divergence. Unless buyers step in, Bitcoin may test the next support zone near $114,500, last seen on July 25. The market now awaits fresh macro data and ETF updates to gauge whether the pullback is a short-term shakeout or the start of a deeper correction.
Author Information
Kosta Gushterov
Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.
Tags: Bitcoin