Bitcoin has demonstrated resilience as its price recovered after previously dipping below the critical support level of $112,000. The recent Bitcoin price drop to $111,964.01 reflects typical crypto market volatility. This dip, which saw Bitcoin fall from around $123,218 to approximately $112,722, was attributed by analysts to mass liquidations of leveraged long positions.
Despite the sharp decline, which caused over $200 million in liquidations of leveraged bullish positions , many market experts do not believe the broader 2025 bull run is over. Derivatives data shows no signs of panic, but rather a healthy de-leveraging within a larger uptrend. The support level between $112,000 and $113,800 is considered crucial. Holding above this threshold may preserve bullish sentiment, while a break below could lead to a further slide toward $110,000.
Market volatility is influenced by various factors, including global economic uncertainty and regulatory announcements. However, the long-term sentiment is bolstered by growing institutional interest. Companies like Strategy and Marathon have announced plans for large Bitcoin purchases, reflecting strong corporate confidence in the asset. Furthermore, the total cryptocurrency market capitalization, despite decreasing by 5.4% in 24 hours to $3.72 trillion , remains at high levels, with Bitcoin's dominance reaching 59.62%.
Analysts are closely monitoring key indicators. The Fear & Greed Index sits at 57 (Neutral) , indicating a more moderate investor stance compared to the 'Greed' seen previously. Historically, periods of low volatility, like the current one, have preceded significant upward moves. While short-term projections remain uncertain, the long-term narrative of Bitcoin as a store of value continues to gain traction.