Bitcoin Correction Spooks Traders as $1 Billion Gets Liquidated, Yet Institutions Keep Stacking

The crypto market just witnessed a significant shake-out. Bitcoin’s recent slide has pushed BTC below the $110K level for the first time in nearly seven weeks, unleashing a wave of forced selling. Within just 24 hours, the liquidation cascade hit approximately $895 million, with over 92% stemming from long position closures. Ethereum followed suit, tumbling roughly 7% from its peak around $4,955 down to $4,415, resulting in approximately $266 million in combined liquidations across both long and short positions.

Yet here’s where the story gets interesting: while retail traders are getting shaken out, the smart money isn’t blinking. The institutional appetite remains intact despite the turmoil. Strategy accumulated 3,081 BTC valued at roughly $343 million—that’s smart accumulation in the face of weakness. Goldman Sachs made a substantial $194 million Bitcoin purchase, signaling corporate confidence. Remixpoint grabbed 41.5 BTC, Metaplanet scooped up 103 BTC, and ETHZilla deployed capital for 7,562 Ethereum tokens worth approximately $35 million.

From a technical standpoint, Bitcoin’s RSI has compressed to 43.6, edging dangerously close to oversold territory. More concerning is the Net Unrealized Profit/Loss metric, which has deteriorated from 8.8% down to just 5.1%—a clear signal that market profitability is shrinking. The real danger zone lies ahead: if Bitcoin breaks through the 200-day exponential moving average positioned around $103.7K, or worse, pierces the 200-day simple moving average near $100.8K, the entire bull cycle structure could face serious jeopardy. These technical levels are critical support barriers that traders and institutions are watching closely.

The divergence is telling: retail capitulation meets institutional accumulation. Whether this marks a healthy shakeout or the beginning of something more severe depends entirely on whether those key technical supports hold.