Daily encryption signals: BTC fell below 115,000 USD, ETH faces the largest short positions in history.

The cryptocurrency market has seen severe fluctuations again this week, with Bitcoin (BTC) breaking below the $115,000 mark and a daily liquidation amount reaching $300 million; Ethereum (ETH) is facing the largest short positions pressure in history. Nevertheless, the inflow of institutional funds and technical signals indicate that there may still be a rebound opportunity in the short term.

Bitcoin falls below $115,000: Institutional funds enter against the trend

(Source: Trading View)

Bitcoin dipped to $113,300 in the latest trading session, triggering over $300 million in liquidations. However, Binance's spot trading volume surged to over $6 billion during the downturn, indicating that institutions and large traders are taking advantage of the price correction to enter the market.

On-chain data shows that the amount of Bitcoin deposited by whales to exchanges has decreased from 6.4 billion USD to 5 billion USD, a reduction of 1.4 billion USD, indicating that selling pressure has eased. Historical experience suggests that when spot trading volume increases and whale sell-offs decrease, the market is often approaching a short-term bottom.

Macroeconomic Background: Inflation and Policy as Double-Edged Swords

From a macroeconomic perspective, Bitcoin is in a complex environment.

Rapid Interest Rate Cut Scenario: If the Federal Reserve is pressured by political factors to significantly cut interest rates, BTC may rise along with other risk assets as a tool to combat inflation.

Gradual interest rate cut scenario: If the policy remains stable, the attractiveness of BTC as a safe-haven asset will gradually increase, especially when the risk of global currency depreciation intensifies.

On the technical side, BTC is still operating along the weekly uptrend. If it can maintain key support, analysts predict that the mid-term target price could reach $130,000.

Ethereum Sets Record Short Positions Pressure: Rebound or Breakdown?

(Source: Trading View)

Ethereum is currently fluctuating around $4,284, facing a net leveraged short position of 18,438 contracts, setting a new historical high. Since ETH fell from $4,790, the strength of the shorts has continued to increase.

However, some whales are going against the trend, such as a long position worth 16.35 million dollars opened with 25x leverage at 4,229.83 dollars, aiming directly at the liquidation cluster between 4,300 and 4,360 dollars. Technical charts show that ETH is still holding above the 20-day EMA and the lower trendline of the descending wedge, which is a typical bullish reversal pattern.

Key Price Levels and Trading Strategies

BTC key resistance: If it can quickly recover above 115,000 USD, it is expected to challenge 120,000 USD; if it falls below 112,000 USD, it may test the support at 108,000 USD in the short term.

ETH Key Support: The $4,200–$4,250 range (100-day moving average) is the dividing line between bulls and bears. Holding this range may trigger short positions covering, pushing the price up to $4,750; if it fails to hold, it may fall back to $4,000 or even $3,920 (200-day moving average).

Conclusion

Bitcoin and Ethereum are currently in a fierce battle between bulls and bears. BTC attracted institutional funds after falling below $115,000, while ETH is seeking a rebound breakthrough under record short positions pressure. The next one to two weeks will be a critical observation period, and investors need to closely monitor changes in trading volume and the performance of key support and resistance levels. For more real-time market data and technical analysis, please follow the official Gate platform.