Bitcoin late longs wiped out as sub-$110K BTC price calls grow louder
Bitcoin recently dropped below $112,000 after a leveraged long squeeze backfired, wiping out hundreds of millions in bullish positions. Traders who had heavily bet on upward momentum saw their positions liquidated, adding further downward pressure. This sharp pullback pushed the price toward a dense liquidity zone, where many stop-loss orders and pending buy orders cluster, potentially offering support.
Market participants remain divided on the implications. Some see this as a routine shakeout to flush weaker hands before another rally, while others caution it could mark the start of a deeper correction if key support levels fail. With volatility high, traders are advised to remain cautious and watch how the market reacts in the coming days.
What just happened
A weekend bounce faded fast as a large seller hit into strength, sending BTC to ~$111,300 and flushing crowded longs across derivatives venues. As Bitcoin price drops below $112,000, perp funding and open interest reset, with more than $600 million in long liquidations led by Bitcoin and Ether. A broader ~$800 million wipeout (longs + shorts) underscores how extended leverage set the stage for a sharp move.
Heatmaps highlight resting bids between ~$110,500 and ~$109,700, with thicker interest down to ~$108,000. That clustering implies price could “sweep the lows” into $108K before any sustained rebound.
How low is “low”?
Some traders stress a must-hold zone near the monthly open (~$111,900). Lose that area decisively and a move back into the prior range opens the door to $107K–$108K—and in a harsher scenario, even a round-number retest near $100K. If Bitcoin price drops below $112,000 on a daily close with momentum, bears gain the initiative for a deeper leg.
Others point to the still-intact parabolic structure on higher time frames. That view keeps long-term targets alive (e.g., $350K in an aggressive upside case), but warns that breaking the curve could accelerate downside toward ~$95K before trend resumes.
The pivotal levels
Immediate support: $111.9K (monthly open), then $111K–$110.5K
Liquidity pocket: $110.5K → $108K
Deeper risk marker: ~$100K psychological; ~$95K if parabola breaks
First resistance back up: $114K–$116K supply, then the $120K handle
Not everyone is bearish
Dip buyers argue that the leverage flush improves the setup. High-conviction traders frame the zone as a “great entry” for swing campaigns if structure holds. For range players, dislocations when Bitcoin price drops below $112,000 can offer asymmetric risk-reward provided risk is sized for volatility and invalidation is clear.
Longer-cycle bulls still cite 2025 targets near $145K as plausible if liquidity and macro tailwinds (e.g., easier rates, ETF demand) persist.
What to watch next
Bid walls & liquidity sweeps: If Bitcoin price drops below $112,000 again, monitor fills between $110.5K and $108K. Absorption there would hint at a local bottoming attempt.
Weekly close: Reclaiming and holding above the monthly open reduces risk of a deeper range re-entry.
Derivatives health: Reset funding, declining OI, and spot-led bounces are healthier tells than levered V-shaped reversals.
Macro catalysts: Fed-dovish rhetoric has helped risk assets. A reversal in rates expectations could pressure BTC; sustained “soft landing” odds support dips.
Conclusion
In the near term, bears are in control as liquidity remains below. The medium-term trend, however, could recover if key support levels stabilize and spot demand reasserts itself.
If Bitcoin drops below $112,000 and tests the $108K liquidity pocket, market reaction will be crucial. A quick absorption signals bullish strength, while prolonged acceptance below may indicate bearish continuation. For patient traders, clarity will come from how price behaves between $108K and $111K and how swiftly spot buying drives any rebound, making these levels critical for gauging the next move.
1) Why did Bitcoin price drop so fast today?
A . A leverage pile-up magnified the move as Bitcoin price dropped below $112,000, triggering cascade liquidations and a rapid run to liquidity.
2) Could Bitcoin fall to $108K or even $100K next?
A . Yes Bids cluster near $110.5K–$108K; a deeper risk emerges if that zone fails, potentially dragging price toward $100K–$95K.
3) What would flip the short-term trend bullish again?
A . A reclaim and hold above the monthly open (~$111.9K) with spot-led buying and calmer funding would weaken the bear case.
4) Is this still a bull market correction?
A . On higher time frames, many see this as a shakeout. If structure breaks (acceptance below key supports), probabilities shift to a larger correction.
5) How should traders manage risk around these levels?
A . Use tight invalidations around key levels, avoid excessive leverage, and size for volatility especially when Bitcoin price drops below $112,000.