Bitcoin (BTC) Slides to $111,000 Amid Technical Breakdown

Bitcoin fell 3.01% in the past 24 hours, dropping to $111,200, as broader market weakness and macroeconomic uncertainty pressured digital assets.

The decline comes amid increased volatility across risk markets and fresh signals that central banks remain cautious about rate cuts.

Macro headwinds pressure sentiment

Speculation over U.S. monetary policy weighed heavily on Bitcoin. Futures markets now price an 87.3% chance of a September rate cut, but Federal Reserve speakers have avoided firm commitments. This ambiguity strengthened the U.S. dollar, raising pressure on risk assets.

Adding to the downside, Brazil rejected a proposal to add Bitcoin to its strategic reserves, weakening institutional confidence across Latin America. Analysts noted the development fueled outflows from BTC-linked products and contributed to the shift in sentiment.

Technical breakdown intensifies losses

On the charts, Bitcoin’s decline was accelerated by a break below the 23.6% Fibonacci retracement at $121,290. The price also lost support at the 30-day simple moving average, triggering automated stop-loss orders.

Momentum indicators confirm the bearish setup: the MACD histogram fell to -493.5, while the RSI sits at 44.28, leaving room for further downside before oversold conditions appear. Analysts now identify the next support between $113,9300 and $119,340, though a sustained close under $111,060 risks a deeper correction.

Leverage liquidation spiral fuels sell-off

Derivatives amplified the move. In the last 24 hours, $272 million in BTC long positions were liquidated, as negative funding rates (-0.0098%) revealed growing bearish bets. With open interest near $999 billion, traders warn volatility could persist until leverage resets to healthier levels.

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What comes next

Bitcoin’s sharp drop reflects the convergence of macro caution, technical weakness, and leverage-driven unwinds. The next 48 hours may hinge on central bank commentary at the Jackson Hole Symposium, where investors hope for clarity on policy direction.

For now, all eyes remain on whether Bitcoin can stabilize above $111,060. A breakdown below that threshold could drag the market toward $110,000, while a rebound could restore momentum into the $113,927–$119,339 range.