Bitcoin Price Risks Drop Below $110K if Key Support Levels Are Lost

Key takeaways:

• Bitcoin price is down 11% from its all-time high, dropping to $111,000 on Monday.

• $108,000 is a short-term target for the bears, with some BTC analysts predicting a drop to $95,000.

Bitcoin (BTC) sellers emerged again on Monday as the drop to $111,000  resulted in a large liquidation of leveraged long positions across the cryptocurrency market.

Bitcoin tumbles below $112,000, wiping out longs

Bitcoin price fell as low as $111,300 on Monday, reversing Friday’s spike fueled by Fed Chair Jerome Powell’s dovish speech, as a whale sold into the rally. 

This extended the drop from the Aug. 14 all-time high of $124,500 to 11% and was accompanied by massive liquidations across the derivatives market.

Related: Bitcoin OG whales to blame for BTC’s painful rise: Willy Woo

Over $642.4 million in long positions were liquidated, with Bitcoin accounting for $235.5 million. Ether (ETH) followed with $155 million in long liquidations.

Across the board, a total of $806.95 million was wiped out of the market in short and long positions, as shown in the figure below.

The Bitcoin liquidation heatmap showed buy orders in the $110,500-$109,700 range in the weekly time frame. More bid orders were building down to $108,000 as shown in the chart below.

This suggests that Bitcoin’s price might drop further to sweep the liquidity within this range before a recovery.

How low can Bitcoin price go?

BTC swept lows below $112,000, leaving traders questioning how low the price could go.

“Bitcoin is still murdering leveraged traders around the range lows, and from the looks of it, the sharks are still hungry,” said trader Jelle in a Monday post on X. 

According to Jelle, Bitcoin was required to hold above the monthly open at $111,900 to avoid a deeper correction toward $100,000. 

“Would really prefer price holds in this area, or we’ll fall back into the previous range which would open us up to another retest of $100K.”

Fellow analyst Captain Faibik said the support around $111,800 was “getting weak,” and if broken, could trigger a fresh downward leg toward the $107,000 and $108,000 zone.

Several crypto industry participants remain optimistic for higher prices in spite of the drawdown. Analyst Gert van Lagen said on Monday that Bitcoin’s parabola remained intact, targeting $350,000, but warned that an invalidation of the structure could see the price drop toward 95,000.

For MN Capital founder Michael van de Poppe, Bitcoin’s dip below $112,000 offers a “great entry” opportunity for traders before making a bigger move back up.

Meanwhile, analyst BitQuant said last week that his cycle top target of $145,000 for Bitcoin was still in play for 2025.

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.