Bitcoin Sticks To $115,000 as Gold Sets a Fresh Record High

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Key points:

  • Bitcoin attempts to liquidate longs at the Wall Street open with $115,000 a focus.

  • Markets are flipping short ahead of Wednesdayโ€™s Federal Reserve meeting.

  • Gold hits fresh all-time highs above $3,700 before correcting.

Bitcoin (BTC) wobbled at Tuesdayโ€™s Wall Street open as analysis eyed potential liquidations.

BTC/USD one-minute chart. Source: Cointelegraph/TradingView

Bitcoin leverage spikes with longs at risk

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD becoming unsettled as the US trading session began.

Price gyrated between $114,800 and $115,300 while surrounded by blocks of liquidity on exchange order books, both up and down.

โ€œThereโ€™s a huge cluster of long liquidations below the current price, specifically around the 114724.3 level. Thatโ€™s a lot of trapped longs,โ€ trading resource TheKingfisher observed in part of its latest commentary on X.ย 

BTC order-book liquidation levels. Source: TheKingfisher/X

An accompanying chart showed relevant โ€œpainโ€ levels for traders above and below spot price.

โ€œThis chart doesnโ€™t predict the future, but it tells you where the pain is. And where the pain is, price movements often follow,โ€ TheKingfisher added, noting high levels of leverage active on the market.

The day prior, popular trader Skew identified similar low-timeframe volatility, querying what he implied was manipulative price behavior.

โ€œMarket remains top side heavy with persistent supply & offloading into price,โ€ he summarized in his latest market coverage.

Skew said traders were flipping short into the weekโ€™s key macroeconomic event: the US Federal Reserveโ€™s interest-rate decision. The Federal Open Market Committee (FOMC) was expected to cut rates for the first time in 2025 by 0.25%.

โ€œQuite large positioning decay already going into FOMC, not surprising although short positioning is starting to pick up as the consensus trade going into FOMC,โ€ he concluded.

BTC price action yet to copy gold

Pre-FOMC nerves were apparent across risk assets.

Related: Bitcoin โ€˜sharksโ€™ add 65K BTC in a week in key demand rebound

US stocks were modestly down at the open, while gold saw noticeable volatility and a fresh all-time high of $3,703.

As Cointelegraph reported, analysis argues that both Bitcoin and gold are โ€œpricing inโ€ future US economic conditions.

โ€œGold leads the way. Bitcoin follows,โ€ popular trader Jelle agreed in part of an X reaction, referencing the tendency for BTC price action to follow goldโ€™s with a several-month delay.

Gold remained firmly in the lead based on year-to-date performance, up 40% since the start of the year against Bitcoinโ€™s 23%.

BTC/USD vs. XAU/USD chart. Source: Jelle/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.