Bitcoin Plunge: Over $800M Wiped as Sub-$110K BTC Price Calls Grow Louder

The cryptocurrency market recently witnessed significant volatility. Bitcoin price experienced a sharp decline, impacting many traders. This movement led to substantial liquidations of leveraged positions across the board. Understanding these market dynamics is crucial for participants.

Understanding the Recent Bitcoin Price Drop

Bitcoin (BTC) recently faced renewed selling pressure. On Monday, the price dropped below $112,000. This movement reversed gains from Friday, which were fueled by Fed Chair Jerome Powell’s dovish speech. A notable whale transaction contributed to this downturn, selling into the rally. The price fell as low as $111,300, extending its drop by 11% from the August 14 all-time high of $124,500. This swift decline had immediate consequences for leveraged traders.

Massive Crypto Liquidations Impact Bitcoin Longs

The recent price action triggered massive crypto liquidations across the derivatives market. Leveraged long positions, which bet on rising prices, were particularly affected. Over $642.4 million in long positions were wiped out. Bitcoin accounted for a significant portion, with $235.5 million in BTC longs liquidated. Ether (ETH) followed, seeing $155 million in long liquidations. In total, the market saw approximately $806.95 million in both short and long positions liquidated. This indicates a highly volatile period where both bullish and bearish leveraged bets faced significant losses. The chart below illustrates the scale of these liquidations.

[screenshot of crypto liquidations chart]

Source: CoinGlass

Analyzing BTC Price Targets and Support Levels

Market analysts are closely monitoring key support levels for the BTC price. The Bitcoin liquidation heatmap reveals buy orders concentrated in the $110,500-$109,700 range. This suggests potential buying interest at these lower levels. Furthermore, more bid orders are building down towards $108,000. This pattern often indicates that the price might sweep liquidity in these zones before a potential recovery. Traders use such heatmaps to identify areas of significant support or resistance. Understanding these technical indicators is vital for anticipating future price movements.

[screenshot of BTC/USDT liquidation heatmap]

Source: CoinGlass

Expert Perspectives on Bitcoin’s Next Move

The recent drop has left many traders questioning how low Bitcoin price could go. Trader Jelle noted, “Bitcoin is still murdering leveraged traders around the range lows, and from the looks of it, the sharks are still hungry.” He emphasized the importance of Bitcoin holding above the monthly open at $111,900. Failure to do so could lead to a deeper correction, potentially towards $100,000. Jelle stated, “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.” This highlights the critical nature of current support zones.

[chart of BTC/USD]

Source: Jelle

Another analyst, Captain Faibik, echoed these concerns. He observed that the support around $111,800 was “getting weak.” If this level breaks, it could trigger a fresh downward leg. This movement might push Bitcoin towards the $107,000 and $108,000 zone. His analysis suggests that the immediate future could see further downside if current defenses fail. This scenario would further pressure Bitcoin longs and potentially lead to more liquidations. The market remains on edge, awaiting confirmation of a stable bottom.

Market Analysis: Bullish Outlook Amidst Volatility

Despite the recent drawdown, several crypto industry participants maintain an optimistic outlook for higher prices. Analyst Gert van Lagen, for instance, suggested that Bitcoin’s long-term parabola remains intact. His target is an ambitious $350,000. However, he also issued a warning: an invalidation of this structure could see the price drop significantly, possibly towards $95,000. This demonstrates the wide range of potential outcomes in the current market. Such varied predictions underscore the importance of thorough market analysis.

[chart of BTC/USD depicting a parabola]

Source: Gert van Lagen

Michael van de Poppe, founder of MN Capital, views Bitcoin’s dip below $112,000 as a “great entry” opportunity. He believes this presents a chance for traders to position themselves before a larger upward move. This perspective suggests that current prices could be a temporary setback rather than a long-term trend reversal. Meanwhile, analyst BitQuant reaffirmed his cycle top target of $145,000 for Bitcoin in 2025, which he stated last week. These contrasting views highlight the ongoing debate among experts regarding Bitcoin’s immediate and long-term trajectory.

Key Takeaways for Traders

• Bitcoin price dropped 11% from its all-time high, reaching $111,000.
• Crypto liquidations totaled over $800 million, impacting many leveraged positions.
• Key bear targets include $108,000, with some analysts predicting a fall to $95,000.
• Some experts view the dip as a potential “great entry” point for long-term investors.
• The market remains highly sensitive to whale movements and technical support levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk. Readers should conduct their own research when making any financial decision. Understanding market dynamics and managing risk are paramount in volatile environments.