- The NFCI reversed from February tightening to ultra-loose levels by March, improving liquidity and risk appetite.
- Bitcoin markets remain sensitive to leverage, with recent spikes in both long and short liquidations affecting short-term trends.
- Bitcoin is consolidating between $108K and $110K, with a breakout likely to define the next directional move.
At the moment, Bitcoin is operating in a strategically positioned price range as U.S. financial conditions are becoming looser. With the price of Bitcoin today trading at $109,346, a decrease of 0.6% over the past 24 hours, market experts are studying how NFCI changes and rising liquidations will influence the next trend.
Financial Conditions Loosen, Aiding Bitcoin Recovery
Recent data from the NFCI suggests a major uptick in financial stress for the U.S. economy back in February which shows one of the tightest conditions in the past few months. Historically, central banks’ tightening policies have often led people to want fewer risk assets such as cryptocurrencies.
After only four weeks, the index turned down, showing high unpredictable levels by March. When requirements for getting loans become less strict, more money is available which often leads to additional investors hoping to buy high-volatility Bitcoin. This macro environment has played a role in Bitcoin’s gradual recovery over the past two months.
Market Activity Reflects High Liquidation Volatility
At the same time, the BTC Total Liquidations Chart from Coinglass, reflects intense volatility among leveraged traders. One of the most significant spikes occurred in early December 2024, long liquidations exceeding $500 million in a single day, suggesting widespread optimism was abruptly challenged by a sharp price drop.
An even more pronounced event followed in late February 2025, with long liquidations surpassing $550 million—closely aligned with the NFCI’s tightening period and a notable price correction in Bitcoin. These incidents point to the high sensitivity of market participants to sudden policy and price shifts.
In contrast, April and May 2025 saw a rise in short liquidations, particularly as Bitcoin broke key resistance levels. More recently, toward the end of May, long liquidations have re-emerged, implying that bullish traders may be entering positions prematurely near current resistance.
Bitcoin Trades in Tight Range Amid Key Technical Levels
Bitcoin is currently trading just below resistance at $110,162, with a support floor near $108,292. The price has remained within this narrow channel in recent sessions, suggesting a wait-and-see attitude among market participants. A decisive break above resistance could encourage a bullish extension, especially with macro conditions now more accommodative.
The current environment marked by easier financial conditions, increased trading liquidations, and tight technical ranges—presents a mixed picture. While the broader macro backdrop now supports risk assets, Bitcoin’s short-term direction may depend on how traders react to liquidation pressure and shifting market sentiment.
