BitcoinMarkets
|4 min ReadBitcoin slides to $112K as cycle signals turn
Maya Chen
Senior Analyst
Published
Jan 16, 2026
The flush and the gap
You felt it. Bitcoin slipped to $111,980 on Monday, a clean 4 percent drop on the day. Bears pressed into the weekly open and cracked the over-levered crowd. Forced sellers hit the tape and size vanished fast.
This move stretched the gap from the Aug. 14 all-time high of $124,500 to about 10 percent. Per Cointelegraph Markets Pro and TradingView, the selloff came with a heavy derivatives unwind.
More than
479.6 million. Bitcoin followed with
1.7 billion was wiped out. In total, 402,730 traders were liquidated as sentiment flipped bearish in hours.Heatmaps show price chewing through liquidity around
400 million in bid orders sits between
110,000. Markets often sweep these zones before the real bounce.Onchain signals warn of fatigue
The Fed cut rates last week. Many framed it as a bullish spark. The market did not follow. Analysts argue the Bitcoin bull run may have run its course.
“Bitcoin is already showing signs of cycle exhaustion and very few are seeing it,” said Joao Wedson, founder of Alphractal, in an X post on Monday (link).
The data lines up. Bitcoin’s Spent Output Profit Ratio, which tracks whether coins move at a profit or loss, shows fading profitability. The Sharpe ratio looks weaker than in 2024, so the trade offers less return for the risk. That is not what large institutions want to see.
“This won’t attract as many institutions as most people believe,” Wedson said. He added, “Even if BTC hits new all-time highs, profitability will remain low, and the real focus will be on altcoins.”
Sentiment and what comes next
Market tone is negative. CryptoQuant’s taker buy/sell ratio sits at -0.79 across exchanges. Below 1 means sellers dominate. At -0.79, active selling volume is beating buying. The last time we saw a similar level was Jan. 20, when Bitcoin reached the 109,000 range. The next three months brought a 32 percent slide to 74,000 in April.
This is a critical zone. Selling pressure exposes weak spots in structure. Bids at
110,000 can attract price. If they fill, the sweep can reset the board. Analysts are mixed on an October rally after Monday’s turn, but the lesson is simple. This market rewards speed and conviction. When the bounce starts, it does not wait.Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.