Traders woke up to a market on edge as Bitcoin sliced below the long-watched $112,500 support and probed the $108,000 area, triggering nearly $889M in 24h liquidations. With a daily close looming and the Asian session set to open, the next few hours could define whether this is a sharp shakeout or the start of a broader risk-off leg across majors and altcoins.

What’s happening right now

Bitcoin’s repeated failures to hold $112,500 culminated in a fast drop toward $108,000. There was no single catalyst, but nerves ahead of macro prints (Consumer Confidence and the Aug 29 PCE inflation reading, forecast 2.9% vs. 2.8% prior) and shifting Fed expectations have amplified volatility. Powell signaled a modest uptick in PCE may be tolerable, but positioning and liquidity pockets are clearly in control near today’s close.

Why this matters to traders

- A daily close below $112,500 keeps trend pressure down and invites fresh momentum selling. - Fast flows around the Asian open can accelerate moves through thin liquidity. - Rotation risk is elevated: as ETH/BTC threatens lower supports, altcoins could underperform on any further BTC weakness.

Key levels to watch

• BTC: Support $108,000; reclaim $112,500 to neutralize downside momentum.
• ETH: Losing $4,320 opens wicks toward $4,084. ETH led alt liquidations (~$287M).
• ETH/BTC: ~0.044 now; downside magnet at 0.038 support—hold here to preserve alt strength.
• XRP: Below $2.82 risks wicks toward $2.74 and $2.57; resilience above the repeatedly tested $2.28 is constructive.
• BNB: Post-ATH pullback; $824 is pivotal. Lose it and lower wicks to $785–$730 are possible.
• ADA: Lost $0.844; watch the $0.76 and $0.695 zones for potential basing.

The actionable takeaway

Define your plan around the daily close and the Asian open. If BTC reclaims and holds above $112,500 on expanding spot bid and improving depth, a relief bounce is favored. If it rejects that level and accelerates through $108,000, prioritize defense and reduce alt exposure as beta risk rises.

A simple, disciplined game plan

• Wait for the daily close: Let the candle print. Avoid chasing mid-whipsaw.
• Set invalidation: For longs, invalidation below $108,000; for shorts, invalidation on sustained reclaim of $112,500.
• Size down on alts: If ETH/BTC presses 0.038, alt underperformance risk increases.
• Use ladders and alerts: Ladder bids near supports; set alerts at $108,000, $112,500, and ETH $4,320.
• Monitor metrics: Track funding, open interest, and spot/derivatives divergence to gauge real demand vs. short-term squeezes.

Scenario map to anchor bias

• Bullish reclaim: BTC defends $108,000, reclaims $112,500, ETH holds $4,320 → relief rally, alt beta stabilizes.
• Continuation lower: BTC loses $108,000, ETH breaks $4,320, ETH/BTC tags 0.038 → de-risk, favor high-liquidity majors, tighten stops.

Altcoin implications

If ETH/BTC defends 0.038, selective alt rotations can resume—even with BTC range-bound. Watch XRP $2.28 as a strength pivot and BNB $824 as the line in the sand. For laggards like ADA, patience at support zones can beat knife-catching.

Risk first, then returns

Use hard stops, avoid oversized positions into macro data, and prefer strength on reclaim rather than fading momentum. In a headline-driven tape, discipline beats conviction.

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