Bitcoin Dips Below $110K: Analysts Warn of Potential Deeper Correction Ahead

Bitcoin's momentum stalls as the flagship cryptocurrency breaches the $110,000 threshold, sparking debate among market watchers.

Technical indicators flash warning signs as selling pressure mounts

Traders eye key support levels while institutional players view the dip as another buying opportunity—because what's a little volatility when you're betting on the future of money? Meanwhile, traditional finance analysts scramble to explain how an asset that's up 150% year-to-date could possibly be 'underperforming.'

This isn't a crash—it's crypto doing what crypto does best: shaking out weak hands before the next leg up.

How low BTC could fall?

Worries about further downside are growing louder, with some observers pointing to September historically being one of bitcoin’s and and the broader crypto market's weakest months.

At the same time, gold, the old-school SAFE haven and inflation hedge, broke out to fresh records above $3,500 following a multimonth consolidation, seemingly sucking capital from riskier plays.

A new report from Bitfinex noted that BTC has entered its third straight week of retracement from the August all-time high of $123,640. Historically, bull-market corrections averaged around 17% peak-to-trough, suggesting the market is nearing the typical limit of its drawdowns, the report said.

However, there's a risk of a deeper pullback, the analysts warned. The short-term holder realized price, a gauge of newer investors’ cost basis of buying BTC, currently sits NEAR $108,900, less than 1% below BTC's current price. If that level fails as support, it could open the way to a deeper retracement, with a dense supply cluster between $93,000 and $95,000 likely providing a durable floor, the report said.

Joel Kruger, market strategist of LMAX Group, remains more optimistic.

September has usually been a month of consolidation ahead of stronger fourth-quarter performance, he said, adding that this year’s correction might be shallower if ETF inflows, corporate treasury allocations and regulatory tailwinds materialize.

Adds BTC supply cluster chart.