Bitcoin (BTC) is currently trading around $113,442, having dipped from recent highs near $123,000. This downturn, which saw the price touch an intraday low of $111,987, signals a short-term technical correction. The market is now flashing mixed signals, with derivatives data and on-chain indicators presenting a divergent picture of investor sentiment and potential future movements.
Derivatives Market: Longs Get Flushed, Options Remain Bullish
The recent price slide has led to a significant clearing of leveraged positions. According to coinglass.com metrics, 24-hour liquidations topped $577.19 million on Saturday, with long positions taking the brunt of the damage, amounting to $514.50 million. This suggests that overleveraged traders betting on a continued ascent were flushed out as the price retreated. While Bitcoin accounted for $93.67 million of these liquidations, Ethereum traders were hit even harder, with $185.7 million in liquidations.
Despite this bearish spot action and heavy long liquidations, Bitcoin options traders appear to remain optimistic for the long term. Calls, which are bullish bets, still represent 61.8% of all open interest in the BTC options market. This is a significant figure, with 210,458.73 BTC in call positions versus 130,099.39 BTC in puts. High-interest strike prices include a Dec. 26, 2025, call at $140,000 and an even more bullish one at $200,000, signalling continued confidence in long-term upside, even as BTC struggles to hold the $112,000 level in the short term. The shift in 24-hour volume, with a slight majority going to puts, reflects a short-term defensive repositioning.
Technical Indicators and On-Chain Metrics
Technical indicators for Bitcoin present a mixed but cautious outlook. Oscillators are leaning neutral to weakly bearish, with the Relative Strength Index (RSI) at 40 and the MACD level signalling a sell. The Commodity Channel Index (CCI), however, is deeply negative at -293, a zone often interpreted as a potential buy signal. Momentum has flipped to -6,171, indicating that downward force is currently in play.
Moving averages are similarly divergent. The short-term 10-, 20-, and 30-day simple and exponential moving averages are all flashing sell signals. In contrast, the longer-term 50-, 100-, and 200-day simple and exponential moving averages still point to a longer-term uptrend. The 200-day SMA at $99,213 and EMA at $100,471 serve as strong longer-term support levels.
On-chain analysis further adds to the complexity. Data from CryptoQuant contributors suggests a weakening appetite for Bitcoin in key markets like the U.S. and South Korea, where regional premiums have either stagnated or turned negative. This could indicate profit-taking and a cautious approach from retail investors. The market is in a critical phase, navigating a technical correction amid strong derivatives activity and heavy liquidations. The immediate future of Bitcoin may depend on macroeconomic data and the rebalancing of derivative markets early next week.
