Bitcoin Faces Key Test Near $107K

Bitcoin slipped below $111,500 during the Asian market session, testing a demand zone between $110,700 and $113,200. This movement cleared liquidity around $115,000 to $114,000, placing Bitcoin at risk of losing support from the 50-day exponential moving average if daily closes remain under $113,200.

Last week, analysts suggested Bitcoin could dip below $113,000 before finding upside momentum. A temporary rally to $117,500 followed the Federal Reserve’s rate cut but failed to shift structure, leading to the current correction. Despite the fall, Bitcoin’s market structure stays constructive as strong U.S. spot demand supports price action.

Data indicated Bitcoin investors bought aggressively during the dip. The Coinbase Premium Index was positive, signaling sustained demand. Research showed nearly 95,800 Bitcoin were accumulated last month, keeping price near the upper trading range even as futures markets weakened.

Close to $280 million in leveraged Bitcoin futures positions were liquidated during the correction. Analysts said this cleared excessive leverage, preparing Bitcoin for healthier continuation if spot demand remains strong.

At present, Bitcoin trades just under $113,000. The first key level is the $110,700–$113,200 zone. A rebound from here would suggest Bitcoin’s pullback was mainly leverage flush. Analysts noted that long liquidations, mostly on Bybit, reset market conditions, which may allow Bitcoin to reclaim $117,000.

If recovery slows, Bitcoin could retest support near $107,200, where over $3 billion in long positions remain exposed. This area may act as deep liquidity before a bullish reversal. Seasonality also supports caution, as September often brings weakness before stronger Q4 rallies for Bitcoin.

The most bearish outcome would be a breakdown below $107,200, possibly reaching $100,000. This would mark structural weakness for Bitcoin, suggesting exhaustion of its current cycle. Glassnode data showed short-term holder cost basis at $111,400, making this level a battle line between bulls and bears. A failure to hold above it could confirm mid- to long-term bearish momentum for Bitcoin.

Bitcoin remains at the center of investor focus, with Bitcoin price moves shaping market confidence. Bitcoin trading levels around $113,000, $107,200, and $100,000 will decide its next trend. Bitcoin liquidations, Bitcoin demand, and Bitcoin support zones are key elements shaping the path forward.