The reasons behind the crypto selling are being attributed to more weak U.S. data and tariff fears, with stocks giving back gains. Today, there are a number of Fed members due to give speeches, and that could help change the sentiment back towards rate cuts.

Plus, President Trump is expected to name a new Fed Governor at any time, and that person could well be seen as Chair Powell's replacement.

Trading Basics

The fact that BTC is holding above the 112,000 level and has rebounded somewhat is fairly encouraging. More encouraging still will be if Bitcoin can somehow stay above the pivotal 114,000 level. This is a key area to watch today.

Market psychology would suggest if there is no appetite for selling under 112,000, then the price heads towards a former significant trading high, such as 118,000 or 120,000.

Market Skew

Positioning data shows that 70 percent of retail traders are short. I'd also point out that the leverage short bias has not changed. The liquidation map shows that a large cluster of 100x Liquidations take place around 111,500 today.

Notably, around 18 billion USD of short positions would be taken out if we saw a recovery towards the 125,000 level. A large cluster of Bitcoin liquidations will take place if the price moves back towards the 116,000 level.

According to data from CryptoQuant the amount of Bitcoin available on OTC desks is reaching very low levels. If there is an extreme low in terms of Bitcoin Supply it does have the potential to push the price higher.

But this assumes ofcourse that there will be no new influx of supply or sellers. China is also injecting substantial amounts of liquidity to finance it's debt obligations.

Based on some credit market expert's this is only going to accelerate over the coming months, which could help Bitcoin.

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