Finance

Bitcoin Dips Below $109,300: Will Key Support Levels Hold the Line?

August 26, 2025, 4:16 PM

A graph depicts the increasing value of Bitcoin.

As the value of Bitcoin surges, investors and analysts alike watch with bated breath for what's next. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Bitcoin’s price has fallen below $109,300, a previous all-time high, experiencing a 13% pullback and breaking below the 100 EMA on the daily chart, signaling potential further corrections.

Analysts have identified key support levels, with the $100,000–$107,000 range as the nearest strong support zone and $92,000–$93,000 as a crucial deeper level.

The market has seen nearly $500 million in BTC long liquidations, but some traders anticipate a potential rebound and short squeeze if Bitcoin reaches $114,000–$115,000.

The Story So Far

Bitcoin’s recent price dip below a previous all-time high and critical technical support levels, such as the 100-day exponential moving average, has triggered market concern because these breaches historically signal potential deeper corrections. This has led traders to focus on key support zones, like the $100,000–$107,000 range, while also monitoring for potential short squeeze-driven rebounds after significant long liquidations.

Why This Matters

Bitcoin’s recent dip below a previous all-time high and critical technical indicators like the 100 EMA signals a potential for deeper price corrections, with analysts identifying key support levels at $103,000, $100,000, and even $92,000. This downturn has triggered significant long liquidations and heightened market volatility, yet some experts suggest the market could be poised for a short squeeze and a rebound towards $114,000-$115,000, reflecting a deeply divided outlook among traders.

Who Thinks What?

Some traders and analysts, including Cryptorphic and Axel Adler Jr., view Bitcoin’s dip below previous highs and key moving averages as a cautionary signal, suggesting a potential deeper correction towards $103,000 or even lower support levels like $100,000 or $92,000–$93,000.

Conversely, other observers like trader BitBull and analytics account TheKingfisher believe that the recent liquidation of long positions has cleared downside liquidity, potentially setting the stage for a rebound driven by short liquidations towards $114,000–$115,000.

Bitcoin’s price has dipped below $109,300, a previous all-time high, sparking concern among cryptocurrency traders as the digital asset faces a 13% pullback from its recent peak. This decline has prompted speculation about potential further corrections, with key technical indicators and analyst targets suggesting critical support levels are now in focus.

Technical Indicators Signal Caution

The latest price dive pushed BTC/USD below its previous all-time high, a psychological threshold that now hangs in the balance. Various simple (SMA) and exponential (EMA) moving averages are at risk of flipping from support to resistance as Bitcoin struggles to halt its decline.

Popular trader Cryptorphic warned that Bitcoin has broken below the 100 EMA on the daily chart, a development he described as “not a good sign.” According to Cryptorphic, this could open the door for a deeper correction toward $103,000, noting that historically, drops below this EMA have often led to short-term pullbacks.

Current data places the 100-day EMA at $110,820, while the 200-day SMA, often considered a classic bull market support line, sits lower at just under $101,000. Bitcoin last traded below the 200-day SMA in mid-April, highlighting the significance of these levels.

Key Support Levels Identified

Some market participants are considering much lower Bitcoin price targets, including a retest of the $100,000 mark and even a return to five-figure territory. These lower targets are reportedly influenced by weakening on-chain metrics such as trade volume and Relative Strength Index (RSI) divergences.

According to analyst Axel Adler Jr., Bitcoin’s speculative investor base may ultimately provide market support. He identified the nearest strong support zone as the $100,000–$107,000 range, where the Short-Term Holder (STH) Realized Price and the SMA 200D intersect.

Adler Jr. also pointed to additional support around $92,000–$93,000. This deeper level reflects the cost basis of short-term investors who held coins for three to six months and would serve as a crucial second line of defense if the $100,000–$107,000 range is lost.

Liquidation Cascades and Potential Rebound

The recent price movements have triggered several major liquidation cascades, punishing long positions across the market. Data indicates that total BTC long liquidations have approached nearly $500 million since Sunday, intensifying market volatility.

Despite the liquidations, some observers see faint hopes for a market rebound. Trader BitBull suggested that the majority of downside liquidity has been “hunted,” potentially setting the stage for short liquidations next. BitBull predicted that Bitcoin could reach $114,000–$115,000 this week, leading to a rally in altcoins.

The $114,000 level is also of interest to analytics account TheKingfisher, who anticipates a “huge wall” of short liquidations if the price returns there. TheKingfisher noted that price is often drawn to such levels, suggesting that “smart money” might be leveraging this as fuel for a potential liquidity squeeze within days.

As Bitcoin navigates critical support and resistance levels, the market remains divided between concerns over further downside and the potential for a short squeeze-driven recovery. Traders are closely monitoring key technical indicators and liquidation data to gauge the cryptocurrency’s next move.