Key takeaways:
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Bitcoin price is down 11% from its all-time high, dropping to $111,000 on Monday.
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$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.
$BTC Bulls are Still Defending the Key Support (111.8k)
As Support getting Weak, I think Bitcoin is likely to drop toward the 107K–108K zone soon 🔜#Crypto #Bitcoin #BTCUSD pic.twitter.com/ZcaG5RhrXE
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