Key insights:
Bitcoin fell beneath $111,500, exploring a significant daily demand zone.
Demand in the spot market remains robust, maintaining a generally bullish market structure.
Price points around $113,000, $107,200, and $100,000 may attract investor interest.
During the Asian trading session on Monday, Bitcoin (BTC) fell below $111,500, clearing internal liquidity between $115,000 and $114,000 and testing a daily demand zone between $110,700 and $113,200. This dip places BTC at risk of breaching support from the 50-day exponential moving average if the daily candle closes below $113,200.
Last week, Cointelegraph projected a likely retest beneath $113,000 prior to potential upward movement. A brief bullish bounce following the Federal Reserve’s interest rate cut on Wednesday briefly pushed BTC to $117,500, but the increase failed to establish a bullish structural break, leading to the ensuing correction.
Despite this downward shift, the overall market structure remains favorable. Data from CryptoQuant suggests that investors were actively purchasing during the dip, as indicated by a strong positive Coinbase Premium Index. This suggests that U.S. spot demand is preventing deeper declines.
On-chain indicators reinforce this perspective. Bitcoin researcher Axel Adler Jr. pointed out that demand has remained steady over the past month, with visible demand accruing to 95,800 BTC. Continuous accumulation keeps price activity near the top of the current range, even as futures markets display short-term weakness.
Moreover, approximately $280 million in BTC futures positions were liquidated during the correction, eliminating leverage that had built during BTC’s ascent to $117,500 from $107,000 in September. With a reset in excessive leverage, the market may be set for a healthier continuation, provided spot demand remains strong.
Related: Bitcoin indicates ‘cycle exhaustion’ as BTC price dips to $112K
Essential Bitcoin price levels to monitor
As Bitcoin trades just below $113,000, three crucial price levels emerge from a trend analysis.
The initial level is the demand zone situated between $110,700 and $113,200. A significant recovery from this range would validate that the recent decline was merely a liquidity flush, expelling excess speculation.
Crypto analyst Dom observed that futures markets experienced one of the largest long position liquidations in recent months, with nearly 80% occurring on Bybit. Such situations often reset market dynamics, leaving space for a more straightforward upward movement. A rapid recovery from this zone could push BTC above $117,000 in the near term.
If the recovery is gradual, Bitcoin may head towards external liquidity or support around $107,200 instead. BTC has often fluctuated between higher timeframe ranges before re-engaging broader trends in 2025. Over $3 billion in long positions remain vulnerable at this level, suggesting a deep liquidity pickup before a bullish turnaround.
Seasonally, September has a reputation for bearish trends, making this scenario likely as a short-term shakeout before stronger bullish momentum in Q4.
The third and most pessimistic scenario would involve a sustained drop beneath $107,200, potentially targeting $100,000. Such an event would signify a structural shift to bearish market conditions, with consolidation at lower levels indicating exhaustion of the current cycle.
Supporting this concern, Glassnode highlighted that the short-term holder cost basis hovers near $111,400. Prolonged trading below this “battle line” between bulls and bears could solidify a shift to a mid- to long-term bearish structure.
Related: Significant long liquidation of the year: 5 things to note regarding Bitcoin this week
This article does not constitute investment advice or recommendations. All investments and trading decisions carry risk, and readers should perform their own research before proceeding.
