Market faces sharp liquidation wave amid renewed geopolitical and macroeconomic uncertainty
Bitcoin (BTC) plunged sharply early Friday, briefly touching $105,000 before rebounding above $113,000, in what analysts describe as a “flash crash fueled by aggressive liquidations and macro-driven panic.” The move erased nearly $7 billion in crypto positions within hours, highlighting the growing volatility as global markets brace for renewed U.S.-China trade tensions.
Data from the BTC/USD daily chart shows that Bitcoin fell from a local high near $124,000 before finding strong demand around the green support zone between $105,000 and $108,000. The rapid recovery that followed suggests algorithmic buying and short-covering activity near that level.
“Bitcoin’s drop coincided with sharp moves in equities and gold futures as traders priced in potential disruptions to trade,” said one BITX market analyst. “The $105,000 level remains crucial, acting as both psychological and structural support.”
The chart also reveals that BTC’s previous breakout from the descending channel structure has now been retested successfully, signaling potential stabilization if macro pressures ease. However, the rejection from the $124,000 resistance zone (highlighted in red) underscores that bullish momentum remains fragile.
According to market data providers, over $7 billion in leveraged crypto positions were liquidated within 24 hours, marking one of the largest liquidation events of the quarter. Most of the losses were concentrated in long positions, amplifying the intensity of the selloff.
“Traders underestimated how sensitive crypto remains to macro headlines,” BITX strategist noted. “When risk sentiment shifts, liquidity dries up fast — especially at elevated price levels.”
For now, Bitcoin’s recovery above $113,000 suggests near-term relief, but analysts caution that continued trade tensions and U.S. policy uncertainty could trigger further volatility. The next key level to watch lies near $120,000, while a close below $105,000 may expose deeper downside toward $98,000.
As geopolitical narratives dominate markets, Bitcoin remains caught between technical resilience and macro fragility, making the coming week critical for traders and institutions alike.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.