#BTC Reserve Market Impact

Bitcoin Price Predictions: Bitcoin Slips Below $113,000 as Liquidations Increase:

- The price of Bitcoin fell on Monday after it failed to stay above the support level of $116,000 last week.
- Liquidations have increased, resulting in the elimination of $1.70 billion from cryptocurrency positions in the last 24 hours, with 95% of them being long-term. Metaplanet purchased an additional 5,419 BTC, raising its total holdings to 25,555 BTC.

The price of Bitcoin (BTC) fell below the $113,000 level on Monday, after failing to hold above a key support level last week.
This correction triggered a wave of liquidations in the cryptocurrency market, resulting in a loss of $1.70 billion from positions in the past twenty-four hours, increasing the downward pressure on traders. Despite the decline in Bitcoin, the Japanese investment firm Metaplanet added Bitcoin to its reserves.

- Huge qualifications:
Bitcoin started the week on a negative note, reaching its lowest level at $111,800 during the European trading session on Monday.

This sudden decline led to a wave of liquidations in the cryptocurrency market, with over 397,000 traders liquidated for a total value of $1.70 billion in the past twenty-four hours, according to Coinglass data. Notably, 95.08% of these liquidations were long positions, confirming the market's excessive bullish sentiment. The largest liquidation occurred on the OKX exchange, where a BTC-USDT-SWAP position worth $12.74 million was liquidated.

Heatmap filtering chart. Source: CoinGlass

Additionally, the Fear and Greed Index dropped to 45 on Monday after the recent price decline, indicating increased caution and a tendency towards fear among market participants.

- Institutional and corporate demand remains strong:
Despite the decline in the price of Bitcoin, institutional and corporate demand remains strong. Data from SoSoValue shows that Bitcoin-related exchange-traded funds (ETFs) recorded total inflows of $886.65 million last week, marking their fourth consecutive week of positive inflows.

On the corporate front, demand for Bitcoin continues to grow, as Japanese investment firm Metaplanet announced on Monday that it has purchased an additional 5,419 Bitcoins, bringing its total holdings to 25,555 Bitcoins. During the same period, Capital B, the first European Bitcoin treasury company, added 551 Bitcoins to its digital currency reserves, bringing its total holdings now to 2,800 Bitcoins.
Bitcoin traders are at levels below $107,000

The price of Bitcoin fell below its daily support level at $116,000 on Friday and declined slightly over the weekend. As of this report on Monday, it continued its correction, retreating from the 50-day Exponential Moving Average (EMA) at $113,926.

If the price of Bitcoin closes below the 50-day exponential moving average at $113,926 on a daily basis, the decline may extend towards its next daily support at $107,245.

The Relative Strength Index (RSI) on the daily chart shows a level of 43, which is below its neutral level of 50, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) lines are converging and are about to cross in a downward direction, reinforcing the bearish outlook.

The daily chart for the BTC/USDT pair

However, if BTC finds support around the 50-day exponential moving average at $113,926, the recovery may extend towards its daily resistance at $116,000.