Bitcoin drops below $112K after heavy liquidations. Analysts warn of more downside as traders ask, “How low can BTC go?”
Bitcoin price has fallen under the $112,000 mark, and is creating worry among investors. This comes amid a string of failed support levels and heavy liquidations that continue to weigh on the market.
Many are now asking how low can Bitcoin price can go as technical signals, macroeconomic factors, and investor sentiment all point toward more downside risk.
Technical Breakdown and Support Levels for Bitcoin Price
Bitcoin price fell through several major levels in quick succession. The 7-day simple moving average at $114,563 failed to hold, as did the pivot point at $112,848 and the Fibonacci 38.2% retracement at $113,847.
Once Bitcoin dropped below $113,000, algorithmic selling and stop-loss triggers caused a rapid move down to the low $111,000s.
The next support sits at $111,000, followed by the zone between $107,000 and $108,000. A deeper slide could test the 200-day exponential moving average at $103,868.
Analysts see this as the final defence before even larger losses. So far, resistance is now clustered around $113,000 to $114,000, which is the same area that flipped from support into overhead pressure.
What Triggered the Bitcoin Price Drop?
The ongoing decline started with a massive $1.7 billion in long liquidations. As these positions were forced out, they created a cascade of selling that quickly dragged Bitcoin lower.
Stop-loss orders added fuel to the move and amplified the downward trend.
Beyond technical factors, macroeconomic events also pressured Bitcoin. Federal Reserve Chair Jerome Powell recently stressed that the Fed will maintain a restrictive stance on monetary policy.
His remarks cooled expectations for any quick rate cuts, which weighed on risk assets like cryptocurrencies.
Geopolitics were also part of the picture. Fresh tariff threats from former President Donald Trump created uncertainty in equities, and Bitcoin’s correlation with stock markets tightened.
Could a Bitcoin Bear Market Already Be Here?
Not everyone believes the current decline is temporary. Crypto analyst EXCAVO argues that the bull market has ended and a bear phase is starting. He pointed to three signals that often mark a market top:
For starters, Governments and firms have adopted crypto more openly, and optimism is at fresh new highs. According to EXCAVO, this kind of enthusiasm is often a warning sign rather than a bullish one.
Additionally, companies like Strategy and others have built massive Bitcoin and Ethereum reserves. While this has supported prices, it also indicates that many major buyers are already in, and are leaving less room for new large-scale accumulation.
Finally, crypto coverage has turned almost entirely bullish, with investors waiting for higher targets like $200,000 or more.
Outlook: How Low Can Bitcoin Price Go?
Bitcoin is currently caught between weak support and heavy resistance. If selling intensifies, prices could test $107,000, then the 200-day EMA near $103,868.
Analyst Ted Pillows recently noted that Bitcoin dropped by nearly 12% after the last rate cut from the previous year.
$BTC dumped nearly 12% after the Fed cut rates in 2024.
A similar dump will put BTC around the $104,000 level, which I think could happen.
The reason is Gold is still running, and institutional flow for Bitcoin has gone down a lot.
Big players usually like to buy fear, and… pic.twitter.com/GAOLqtJyDK
— Ted (@TedPillows) September 24, 2025
Because of this, he says that a similar move in the current year could drive Bitcoin down towards $104,000
Analysts are warning that panic could drive Bitcoin closer to $90,000. On the other hand, a strong rebound above $113,500 may open the door to $115,000 and stabilise sentiment.