HBAR Plummets to 2-Month Low Amid Bitcoin’s Sharp Decline Below $112,000

Digital assets face brutal selloff as market leader triggers domino effect.

Market Domino Effect

HBAR just got caught in Bitcoin's downdraft—crashing to levels not seen since late July. The benchmark cryptocurrency's breakdown below $112,000 sparked panic across altcoin markets. Trading volumes exploded as stop-losses triggered cascading liquidations.

Technical Breakdown

Support levels evaporated faster than a hedge fund's credibility during a margin call. The 200-day moving average offered zero protection as algorithmic traders piled on the momentum play. HBAR's chart now shows the classic pattern of a market abandoning ship.

Institutional Reaction

Whales are repositioning while retail investors stare at red portfolios. The correlation between Bitcoin and major alts remains painfully tight—proving once again that diversification in crypto often means owning different shades of the same risk. Traditional finance analysts are already drafting 'I told you so' memos.

This is what happens when the tide goes out—we see who's been swimming naked.

Hedera Holders Show Belief

The correlation between HBAR and Bitcoin currently sits at 0.94, signaling a near-perfect alignment with BTC’s price action. Such a high correlation often amplifies volatility, as any major move in Bitcoin tends to cascade into Hedera’s trajectory.

This tight relationship comes at a challenging time. Bitcoin dropped to $111,600 in the past 24 hours, pulling the crypto market lower. With the leading cryptocurrency struggling to stabilize, HBAR risks additional declines if BTC’s weakness persists. Investors may need to brace for further downside.

Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Despite the bearish backdrop, the Chaikin Money Flow (CMF) indicator shows an unexpected spike in inflows. This reflects renewed investor interest in Hedera, even as prices hover NEAR recent lows. Strong inflows can act as a cushion, slowing losses and offering a chance for stabilization.

Sustained demand is critical for any recovery attempt. If buyers maintain support, HBAR could find the foundation it needs to resist Bitcoin’s drag. However, any reduction in inflows WOULD weaken this safety net and deepen the bearish outlook for the altcoin.

HBAR Price Faces Correction

At the time of writing, HBAR trades at $0.222, holding narrowly above its $0.219 support level. The sell-off pushed the token to a fresh two-month low before a minor rebound softened the decline.

While the price has managed a modest recovery, bearish forces remain dominant. Under the weight of its downtrend, HBAR is likely to trade sideways in the near term, consolidating between $0.230 and $0.213 as uncertainty lingers.

Should investor inflows strengthen further, the outlook could shift. A bounce from current levels would allow HBAR to flip $0.230 into support. Such momentum could propel the token toward $0.242, breaking its downtrend and invalidating the bearish thesis.