Bitcoin (BTC) Dips Below $110,000 as $594M Liquidations Sweep the Market

Bitcoin, the first and largest cryptocurrency, is trading lower early Saturday.

Bitcoin, the world's leading cryptocurrency, was seen trading lower early Saturday, as the broader crypto market pulled back from yesterday's drop from $112,000 to $106,800 amid macroeconomic concerns.

Bitcoin was trading at the $108,194 at the time of writing, dropping 2.38% over the last 24 hours.

According to CoinGlass data, $594 million in crypto derivatives were liquidated in the last 24 hours, as crypto bulls lost $507 million while shorts accounted for $87 million.

The pullback arrived just as Bitcoin saw increased ETF inflows and institutional interest, which may lead some to anticipate an uneventful weekend.

This is also reflected in funding rates (which signal traders' sentiments in the perpetual swaps market,) which are suggesting caution, with traders remaining on the sidelines.

According to Glassnode, despite BTC trading above $108,000 with 100% of its supply in profit, funding rates are still muted at 0.0079%, which is below neutral. Across the top 10 coins, speculative appetite was also surprisingly subdued.

While the very short-term sentiment may indicate caution, on-chain data reveals Bitcoin forming strong support at lower levels.

According to the on-chain analytics platform, more than 420,000 BTC now have a cost basis around the $94,000 level, forming one of the strongest support zones in the current cycle. This massive accumulation zone showcases the significant buying interest encountered at this price level.

"More than 420K $BTC now have a cost basis around the $94K level, forming one of the strongest support zones in the current cycle. This dense cluster of accumulation has held firm through consolidation in early May - providing the launchpad for #Bitcoin's breakout to new highs."

This dense cluster of accumulation at around $94,000 has held through the consolidation we saw in early May, which ultimately provided the launchpad for Bitcoin’s breakout to new highs.

Bitcoin is currently experiencing profit taking from the recent leg up, but strong on-chain support at $94,000 still gives bulls reason to be hopeful. As long as BTC manages to stay above this level, the broader uptrend could continue.

Analysts will be watching key technical levels and macroeconomic indicators to try and predict Bitcoin's next move. For now, $94,000 is a key line in the sand.