Bitcoin Gets Dragged into the Abyss after $109K Break

Bitcoin has slipped under $109,000, putting pressure on a level that once marked its old all-time highs. The breakdown comes as bulls nurse a 13 percent pullback from record levels, raising the question of how much further the drop can go.

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Traders are watching trendlines closely. Popular analyst Cryptorphic warned that Bitcoin has fallen below the 100-day EMA, a move that has often led to deeper short-term corrections. “That’s not a good sign and could open the door for a deeper correction toward $103K,” he said.

Bitcoin’s Key Averages Turn Into Threats

Technical markers that once acted as support are now at risk of flipping into resistance. The 100-day EMA sits around $110,800. The 200-day SMA, considered a long-standing bull market line, rests near $101,000. The last time Bitcoin traded below that 200-day level was back in April.

If the $101,000 support gives way, traders warn that momentum could turn fast. Historical patterns suggest these levels are decisive, and losing them could mean a sharp reset in bullish sentiment.

Speculators Look for Safety Nets

Some analysts believe short-term holders may keep Bitcoin afloat. CryptoQuant contributor Axel Adler Jr. pointed to a strong support zone in the $100K–$107K range, where cost bases of short-term investors overlap with the 200-day SMA.

Below that, Adler flagged a deeper safety net near $92K–$93K, tied to the cost basis of investors who held for three to six months. If the first line of defense cracks, this zone could become critical.

Liquidations Keep Fueling the Slide

The recent drop has been fueled by heavy long liquidations. Data from CoinGlass shows nearly $500 million wiped out since Sunday as traders betting on higher prices got caught in the cascade.

Still, order books now suggest most downside liquidity has been cleared. Some see that as a setup for the next reversal, where shorts could be the ones under pressure.

Bitcoin Rebound Bets Focus on $114K

Not everyone is bracing for more losses. Trader BitBull argued that downside liquidity has been “hunted” and predicted Bitcoin could climb back toward $114K–$115K this week, setting up a rally in altcoins.

Analytics account TheKingfisher agreed, pointing to a “huge wall” of short liquidations waiting above $114K. “Price often gets pulled to these levels. Smart money is likely using this as fuel,” it said, hinting the squeeze could arrive within days.

At the time of writing, Bitcoin is sitting at $110,430.44.