Bitcoin's $105k Test: Bulls Confront a Surge of Liquidations

Bitcoin’s value saw a sharp drop after a historic $1.8 billion in long positions were liquidated, drawing the cryptocurrency closer to a crucial $105,000 support mark. In the last 24 hours, over 370,000 traders saw their positions liquidated, with most of the losses coming from

and trades. According to CoinGlass, this is the largest liquidation event so far in 2025, as total crypto market value dropped by more than $150 billion to reach $3.95 trillion. The decline followed an unsuccessful push above $117,968, leading to a steep fall down to $112,725.

From a technical perspective, the outlook remains negative, with a bearish engulfing candle appearing on the daily chart after price was rejected at the $117,000–$118,000 resistance zone. The 100-day EMA at $111,882 was temporarily broken, while momentum indicators such as RSI and MACD have turned bearish, indicating increased selling pressure. Short-term investors are closely monitoring the $112,000–$113,500 range, which is now seen as a key battleground. If Bitcoin can reclaim $113,500, it may ignite a move back to $116,000–$117,500, but a fall below $112,000 could intensify the slide toward $107,200.

This wave of liquidations has reset market leverage, with open interest plunging by nearly $2 billion and funding rates coming back to normal levels. Analysts point out that such corrections typically reduce excess leverage, possibly paving the way for a healthier recovery. Still, the outlook remains uncertain. The Federal Reserve’s 25-basis-point rate reduction earlier this month initially sparked a rally to $118,000, but that momentum soon faded. Fed Chair Jerome Powell’s cautious tone and the 10-year Treasury yield holding at 4.148% continue to put pressure on riskier assets.

Historically, October (“Uptober”) has been a strong month for Bitcoin, but current market turbulence stands in contrast to previous patterns. The 9.5% drop from August’s high is less severe than usual bull market corrections, and some experts believe the coin could still challenge the $105,000–$100,000 support area, including the 200-day moving average at $103,700. IG’s Tony Sycamore believes that retesting this level could shake out weak holders and set the stage for a potential year-end upswing.

Ongoing regulatory shifts add further complexity. The SEC and CFTC’s collaborative efforts to align crypto regulations, and the idea of 24/7 trading, could ultimately reshape the market. For now, though, attention remains on technical and macroeconomic signals. The $105,500–$115,200 range is a crucial on-chain cost region for 85–95% of Bitcoin’s total supply, making it a vital area for bulls to defend.

Traders and investors are split on the next move. While institutional investments, such as BlackRock’s $239 million Bitcoin ETF acquisition in June 2025, signal ongoing accumulation, the recent spate of liquidations underlines the vulnerability of leveraged trades. After weeks of selling, the Cumulative Volume Delta (CVD) has nearly evened out, suggesting the market could be stabilizing. Still, a break below the $105,000 support could trigger further declines, potentially shifting Bitcoin’s reputation from “digital gold” to a more speculative, high-risk asset.