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

Bitcoin's bull run hits a speed bump as the flagship cryptocurrency tumbles below the $110,000 threshold.

Market analysts sound alarm bells about mounting selling pressure and potential further downside.

Technical indicators flash warning signals as traders brace for increased volatility in the coming sessions.

Meanwhile, traditional finance pundits suddenly remember they 'always believed in crypto'—right after finishing their morning coffee and panic-selling their positions.

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.