Bitcoin drops under $109K: How low can BTC price go?
Bitcoin has slipped below the old all-time high near $109,300, leaving bulls on edge after a swift pullback from recent peaks. The move forms part of a broader 13% retracement from all-time highs and raises questions about where BTC price action heads next.
Technically, several key trendlines are now at risk of being flipped from support to resistance. The 100-day exponential moving average (EMA) has been breached on the daily chart — a development some traders view as a warning sign that deeper downside could follow. The 100-day EMA is tracking around $110.8K, while the 200-day simple moving average (SMA), a classic longer-term bull-market support, sits just under $101K. The last time Bitcoin traded below that 200-day SMA was in mid-April.
Market analysts point to weakening on-chain metrics — such as falling trade volume and RSI divergences — as factors that could amplify the correction. Some participants expect a retest of the $100K level, and a subset of speculators even see a scenario where BTC re-enters five-figure territory if key supports fail to hold.
Onchain analytics contributors note that the aggregate cost basis of short-term holders (those holding for six months or less) often acts as a support zone during pullbacks. The nearest meaningful support band is roughly $100K–$107K, where short-term-holder realized prices and the 200-day SMA converge. Below that, there is additional support around $92K–$93K, reflecting the cost basis of short-term investors who held for three to six months. That lower band would become a critical second line of defense if the market loses the $100K–$107K range.
The recent price move has also triggered sizable liquidation cascades. Data aggregators show that nearly $500 million in BTC long positions were liquidated over the recent days, removing a lot of downside liquidity from exchange order books. With that liquidity hunted, some traders suggest that the next wave of forced liquidations could target short positions if price rallies back up.
Several traders and analytics accounts have highlighted $114K as an important upside liquidity magnet. If BTC is pulled back to that area, a concentration of short positions could be squeezed, potentially fueling a quick move higher — some market voices have even predicted a snap to $114K–$115K that could ignite a broader altcoin rally.
As always, market conditions can change rapidly. This article is for informational purposes only and should not be taken as investment advice. Every trading decision involves risk, and readers should conduct their own research before acting.
Source: Cointelegraph
