Analysts Warn: Bitcoin Could Plunge Below $100,000 Before Rebounding in September 2025

• Why Are Analysts Predicting a Potential Drop Below $100,000?
• How Does This Correction Compare to Historical Bull Market Pullbacks?
• What's Behind Bitcoin's Underperformance vs. Traditional Assets?
• Key Price Levels Every Bitcoin Trader Should Watch Now
• Is This the End of Bitcoin's Bull Run or Just a Breather?
• Frequently Asked Questions

Bitcoin's price action has entered a sluggish phase, trading between $110,000-$112,000 with reduced momentum. Market analysts from Glassnode, CryptoQuant, and Santiment suggest this correction might deepen, potentially testing $93,000-$95,000 if $104,000 support breaks. However, most experts view this as a healthy reset within an ongoing bull cycle, with historical patterns suggesting eventual recovery. Key levels to watch include $104,000 (critical support) and $114,000-$116,000 (bullish confirmation zone). Interestingly, Bitcoin's recent underperformance versus traditional assets like Gold (+5.5% since August) might actually set the stage for a stronger rebound.

Why Are Analysts Predicting a Potential Drop Below $100,000?

The current market consolidation has traders on edge. Ted Pillow, a veteran analyst at BTCC, draws parallels to previous corrections in 2024-early 2025 when bitcoin typically saw 30% pullbacks before resuming uptrends. "We're seeing textbook profit-taking after the $123,000 ATH," he notes, "and frankly, a dip below six figures wouldn't surprise me - we've seen this movie before in bull markets." Glassnode's latest on-chain data reveals fragile support at $104,000; a breakdown here could trigger stop-loss cascades toward $93,000-95,000. Their chart tracking short-term holder profits (those orange lines looking shaky below key thresholds) suggests weak hands might panic-sell if pressure mounts.

How Does This Correction Compare to Historical Bull Market Pullbacks?

CryptoQuant's Darkfost crunched the numbers: "Since the $123,000 peak, we're only down 12% - that's baby food compared to March 2024's 28% drop." Historical data from TradingView shows bull markets typically digest gains with 20-25% corrections. These resets actually strengthen rallies by flushing out excess leverage (looking at you, perpetual swap traders) and letting new money enter at better prices. The current derivatives market shows open interest declining healthily without liquidation cascades - a sign this might be organic cooling rather than structural weakness.

What's Behind Bitcoin's Underperformance vs. Traditional Assets?

Santiment spotted an intriguing divergence: while Bitcoin dipped 5.9% since August 22, the S&P 500 gained 0.4% and gold rallied 5.5%. This decoupling from traditional markets (unusual since 2022's institutionalization phase) could mean two things: either crypto's losing its risk-on appeal, or we're primed for a violent catch-up rally. "When digital assets lag this noticeably," observes Santiment's team, "they tend to snap back violently to realign with broader trends." The wider the gap, the stronger the eventual mean reversion.

Key Price Levels Every Bitcoin Trader Should Watch Now

The market's telling a clear technical story:

• Bullish scenario: A sustained break above $114,000-$116,000 would restore short-term holder profits (see that orange line crossing above blue thresholds in Glassnode's chart) and likely reignite FOMO.
• Bearish trigger: Closing below $104,000 on weekly charts opens the trapdoor toward $93,000-$95,000 - an area that previously acted as strong resistance-turned-support.
• Wildcard: The psychological $100,000 level could spark either panic selling or aggressive accumulation depending on market sentiment.

At press time (September 6, 2025 10:30 UTC), Bitcoin trades at $111,576, up 1% daily but still trapped in this make-or-break zone.

Is This the End of Bitcoin's Bull Run or Just a Breather?

Virtually all analysts agree this is correction-not-collapse territory. Darkfost reminds us that "even 2017's parabolic rally had three 30%+ drawdowns." The fundamental backdrop hasn't changed: institutional adoption continues (BlackRock's BTC ETF just hit record AUM), hash rate keeps climbing, and the macroeconomic environment still favors hard assets. As one trader quipped on crypto Twitter: "This isn't your exit - it's your last chance to buy the dip before the halving rally." That said, always DYOR - this article doesn't constitute investment advice.

Frequently Asked Questions

How low could Bitcoin realistically drop in this correction?

Glassnode's models suggest $93,000-$95,000 if $104,000 breaks, representing a 15-17% drop from current levels - well within historical norms for bull market corrections.

What would trigger a Bitcoin price recovery?

Three key factors: 1) Short-term holders returning to profit above $114,000, 2) Futures market resetting to neutral funding rates, and 3) Resumption of institutional inflows via ETFs.

Why is Bitcoin underperforming gold and stocks recently?

Possible reasons include profit rotation into traditional SAFE havens, temporary risk-off sentiment in crypto, or simply traders front-running the expected post-correction rebound.