Bitcoin Price Drops 11% as Long Positions Get Liquidated

Bitcoin Falls to $111,000 After Massive Sell-Off

Bitcoin price plummeted to $111,000 on Monday, marking an 11% decline from its all-time high of $124,500 reached on August 14. The sharp drop reversed Friday's gains that were driven by Federal Reserve Chair Jerome Powell's dovish speech, as cryptocurrency whales sold into the rally.

$642 Million in Long Positions Wiped Out

The Bitcoin price crash triggered massive liquidations across the derivatives market. Over $642.4 million in long positions were liquidated, with Bitcoin accounting for $235.5 million of the total. Ethereum followed with $155 million in long liquidations.

Total market liquidations reached $806.95 million across both short and long positions, highlighting the volatile nature of leveraged cryptocurrency trading.

Key Support Levels Under Pressure

Bitcoin liquidation heatmaps reveal significant buy orders clustered in the $110,500 to $109,700 range on weekly timeframes. Additional bid orders are building down to the $108,000 level, suggesting Bitcoin price might drop further to sweep this liquidity before any recovery begins.

Analyst Predictions Point to Further Declines

Cryptocurrency trader Jelle warned that Bitcoin continues to punish leveraged traders around range lows. According to his analysis, Bitcoin must hold above the monthly open at $111,900 to avoid a deeper correction toward $100,000.

"Would really prefer price holds in this area, or we'll fall back into the previous range which would open us up to another retest of $100K," Jelle stated.

$108,000 Target Emerges as Next Support

Fellow analyst Captain Faibik identified weakness in the $111,800 support level. If this key support breaks, Bitcoin could trigger a fresh downward move toward the $107,000 to $108,000 zone.

Bulls Remain Optimistic Despite Selloff

Several cryptocurrency analysts maintain bullish long-term outlooks despite the current drawdown. Analyst Gert van Lagen believes Bitcoin's parabolic structure remains intact, targeting $350,000. However, he cautioned that a structural breakdown could see prices drop to $95,000.

MN Capital founder Michael van de Poppe views Bitcoin's dip below $112,000 as a strategic entry opportunity for traders before the next major upward move.

Cycle Top Targets Still in Play

Analyst BitQuant maintains his cycle top target of $145,000 for Bitcoin in 2025, despite the current price weakness. This suggests that while short-term volatility continues, long-term bullish sentiment persists among cryptocurrency market participants.

Risk Management Essential in Volatile Market

The recent Bitcoin price action demonstrates the importance of proper risk management in cryptocurrency trading. Leveraged positions remain particularly vulnerable during periods of high volatility, as evidenced by the massive liquidations across the market.

Traders should conduct thorough research and consider their risk tolerance before making investment decisions in the highly volatile cryptocurrency market.

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