Bybit Market Watch: Bitcoin Dips to $112.3K Amid Bearish Signals and Thin Liquidity

Bitcoin experienced a sharp decline to $112,605.2 during a volatile trading session, marking a seven-day low as bearish indicators emerged. The drop of over $800 in minutes highlighted concentrated sell pressure, despite $704.29 million in spot volume. Trading activity showed a contradictory trend, with aggregate volume plunging 34% to $60.4 billion. This article delves into the factors behind Bitcoin's recent price movement and what traders on Bybit should watch for in the coming days.

Bitcoin Slides to $112.3K as Bearish Indicators Emerge Amid Thin Liquidity

Bitcoin tumbled to a seven-day low of $112,605.2 in a volatile evening session, shedding over $800 in minutes as technical indicators flashed warning signals. The sudden drop from $113,437 occurred despite $704.29 million in spot volume, suggesting concentrated sell pressure rather than organic market movement.

Trading activity tells a contradictory story - aggregate volume plunged 34% to $60.4 billion even as price swings intensified. Bybit's 5-minute charts captured the abrupt descent, with three consecutive red candles breaching key support at $113,400. The breakdown coincided with bearish confirmations from both RSI and MACD oscillators.

Market structure appears fragile. The 0.98% daily decline and 1.59% retreat from intraday highs reveal weakening momentum after Bitcoin's recent ascent above $113,800. Such volatility clusters often precede directional moves - in this case, the technical posture suggests further downside risk.

Smart Money Flows Into ETH, SOL, and RWAs While Stablecoins Decline: Report

Ethereum and solana are emerging as dominant players in the derivatives market, while Ondo Finance gains traction in the real-world assets (RWA) sector. Bybit's latest Smart Money Report highlights a strategic shift among institutional investors, with ETH and SOL leading the charge. Stablecoin movements suggest the current rally may have staying power.

Portfolios are increasingly diversified, with notable allocations to ONDO, UNI, and WLD. The prominence of Liquid Collective's staked ETH (LsETH) underscores institutional confidence in Ethereum's long-term utility. ONDO Finance's success reflects growing convergence between traditional and decentralized finance.