Bitcoin Drops Below $110K – What is the Next Support?
Bitcoin has damaged under the important thing $110,000 assist zone after weeks of bearish divergence and technical deterioration, elevating questions on whether or not it could stabilize above $105,000 or face deeper corrections towards the psychological $100,000 degree.
The decline follows mounting bearish strain from a number of technical indicators, together with a double-top sample with a neckline round $112,000 and the 50-day EMA at $114,000, which is now performing as sturdy resistance.
Momentum indicators, together with the MACD, have turned adverse with bearish crossovers throughout a number of timeframes, whereas RSI readings round 59 counsel additional draw back potential towards the important thing 50 degree.
In truth, the 30-day shifting common of the Taker Purchase/Promote Ratio has reached its lowest level since Might 2018, indicating that the Bitcoin market could face some promoting strain and corrections within the quick time period.
Bearish Divergences Point out Deeper Correction Forward
A number of analysts have recognized sturdy bearish divergences throughout weekly, bi-weekly, and month-to-month timeframes which have been constructing over a number of months.
The RSI at present sits at 59, suggesting potential additional draw back towards the important thing 50 degree primarily based on historic patterns the place earlier pullbacks examined the 50-week shifting common earlier than establishing new uptrends.
A double-top sample has shaped round $123,250, and the neckline decisively broke under $112,000, confirming the bearish reversal construction.
MACD indicators throughout a number of timeframes present bearish crossovers, whereas weekly charts show regarding wick formations that always point out cycle tops.
The breakdown under $110,000 opens instant draw back targets towards $105,000, with extra extreme situations pointing to exams of the $100,000-$102,000 psychological assist zone.
Historic cycle evaluation reveals that every one main Bitcoin tops are preceded by native peaks, adopted by technical deterioration.
The failure of Technique shares to attain new highs since November 2024 regardless of continued BTC accumulation confirms underlying weak point within the “infinite cash glitch” narrative.
In keeping with the information from this month, CryptoQuant has indicated that the Bull Score Index is now at 40 and has transitioned to the “Getting Bearish” part.
Seasonal Patterns and Sentiment Extremes Create Blended Alerts
September traditionally represents Bitcoin’s weakest-performing month, with common losses of three.77% throughout bull market years, creating further headwinds for restoration makes an attempt.
Retail dealer sentiment has reached excessive bearish ranges following the drop under $113,000, marking essentially the most adverse studying since June 22.
Historic evaluation means that such excessive pessimism typically coincides with shopping for alternatives, as markets often transfer in the wrong way of crowd expectations.
Institutional accumulation persists regardless of retail liquidations, with corporations similar to Strategy and Metaplanet persevering with their Bitcoin acquisition methods.
This creates a divergence between leveraged retail positions being squeezed out and strategic institutional shopping for throughout weak point.
A number of analysts ‘ longer-term projections keep bullish targets, with Fibonacci extensions pointing towards $155,000 and a few situations reaching $190,000 throughout potential “push” phases.
$BTC MACRO EXTENSION TARGETS INCOMING
In keeping with the third Fibonacci degree, Bitcoin’s value goal stands at $155,000. Regardless of bearish sentiment, new all-time highs seem seemingly.#Bitcoin #Crypto pic.twitter.com/RKYLwWwd54
— Bitcoinsensus (@Bitcoinsensus) August 26, 2025
Nonetheless, given the present technical deterioration, these targets seem more and more distant and will require months of base-building earlier than they turn into achievable.
The important thing juncture facilities on every day closes relative to the $111,000 and $108,500 ranges, with breaks under confirming deeper correction situations towards the $92,000-$98,000 vary.
Conversely, a profitable protection of present assist may set up situations for counter-trend bounces. Nonetheless, bearish divergences counsel that any rallies could face sturdy resistance.
Technical Restoration Situations Level to Gradual Base Formation
Regardless of the bearish breakdown, Bitcoin’s long-term infrastructure stays intact, with institutional adoption persevering with by way of company treasury methods and enhancements in regulatory readability.
The pullback towards the 50-week shifting common aligns with historic cycle patterns the place main corrections set up launching pads for subsequent advances.
Key restoration ranges embody reclaiming $112,000 as assist with sustained quantity, adopted by breaking again above the 50-day EMA at $114,000.
A profitable shut above $116,200 would negate the instant bearish construction and open targets towards earlier resistance ranges round $120,000.
Quantity evaluation throughout any bounce makes an attempt shall be key, with institutional accumulation patterns more likely to emerge at cheaper price ranges as strategic patrons view corrections as a possibility.
The check of main assist zones between $100,000 and $105,000 may set up the inspiration for a multi-month consolidation earlier than renewed uptrends.
Momentum indicators require time to reset from oversold situations, with RSI under 50 needing to ascertain larger lows and MACD histograms requiring optimistic divergence formation.
The timeframe for technical restore may lengthen from a number of weeks to months, relying on the depth of the present correction.
Restoration situations favor gradual accumulation phases slightly than sharp V-bottom reversals. Profitable protection of main assist ranges offers the groundwork for the eventual resumption of uptrends towards the following goal.
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