Bitcoin Price Slips Below $112K as $642M in Longs Liquidated, Analysts Eye $107K Support

Crypto markets faced a wave of forced liquidations on Monday as Bitcoin (BTC) dipped below $112,000, triggering calls for further downside toward the $107,000 mark. The move underscores fragile investor sentiment and rising volatility across the digital asset space.

Market Jolt as Longs Unwind

Bitcoin’s decline came amid heightened selling pressure in Asian trading hours, with data from CoinGlass showing more than $642 million in leveraged long positions liquidated within 24 hours. Of that total, $235.5 million was tied directly to Bitcoin, marking one of the largest single-day wipeouts in recent weeks.

The liquidation cascade reflects a broader market reset after Bitcoin briefly tested levels near $114,500 last week. Ether (ETH) also followed the downward trajectory, slipping 4.2% to trade near $5,480, while altcoins across the board recorded double-digit intraday losses.

Analysts Warn of Sub-$110K Scenarios

Technical analysts point to a critical support zone between $107,000 and $108,000. A breach below this range, they argue, could accelerate selling momentum and invite a deeper retracement toward the psychological $100,000 threshold.

“Momentum indicators are still pointing south, and the lack of strong bid support in derivatives markets makes it difficult to rule out a sharper correction,” said David Lin, head of research at Arca Digital. “Traders should watch open interest closely—if it contracts further, the path of least resistance remains lower.”

Funding rates across major exchanges have also shifted negative, a sign that bearish sentiment is now outweighing leveraged optimism.

Investor Psychology and Market Sentiment

The wipeout reflects more than just technical flows—it also highlights the fragile psychology underpinning today’s crypto market. Many investors had piled into leveraged positions following July’s rally, betting on Bitcoin’s push beyond $120,000.

Instead, the market’s failure to sustain those levels triggered a feedback loop: liquidations forced prices lower, which in turn led to further liquidations. Market makers describe this as a “flush-out event,” often necessary to restore balance after speculative excess.

“Retail traders tend to overextend in bull runs,” said Priya Deshmukh, a digital asset strategist at Nomura. “While painful, these corrections can create healthier conditions for longer-term accumulation.”

Strategic Outlook: Risks and Opportunities

Despite the turbulence, institutional flows remain resilient. ETFs tracking Bitcoin futures continue to see modest inflows, while corporate buyers such as Metaplanet have announced fresh purchases totaling more than $11 million worth of BTC, signaling that strategic capital still views dips as buying opportunities.

Looking ahead, traders will be focused on macroeconomic cues—including U.S. inflation data and central bank commentary—that could shape liquidity conditions for risk assets. Should Bitcoin stabilize above $107,000, analysts expect renewed attempts to reclaim the $115,000–$118,000 zone.

The coming weeks will test whether Bitcoin’s latest sell-off is a prelude to a deeper drawdown or simply another reset in its long-term uptrend. For seasoned investors, the volatility remains both a risk and an entry point.