Bitcoin’s $109,000 Lifeline: Will This Critical Support Spark the Next Bull Run?

Bitcoin teeters at a pivotal moment—all eyes fixed on the $109,000 support level.

The Battle for Momentum

Market sentiment swings between fear and greed as Bitcoin tests a crucial price floor. Traders hold their breath, watching for signs of stabilization or breakdown.

Technical Tug-of-War

Resistance levels loom overhead while the $109,000 zone acts as digital bedrock. Every candle chart tells a story of bulls and bears locked in combat.

Institutional Whispers

Wall Street's latest crypto fascination—treating digital gold like just another asset class while missing the entire revolution. Some things never change.

The rebound question hangs heavy in the air. Will this support hold and launch the next leg up, or become another entry in crypto's volatile history books?

• Bitcoin drops to $109K after a 5% weekly decline, with $1.65B in long liquidations.
• BTC must hold $109K support to target $112K-$115K, or risk falling to $107K.
• Bitcoin’s ELR remains steady at 0.285, signaling market stability despite recent liquidations.

Bitcoin fell to approximately $109,558 relative to week-end, after falling by 5.28% over the past week. This fall was preceded by a major liquidation round, and the hit was made up of long positions. Analysts identified a key support level at the $109,000 mark. The fact is that when this level does not fall then it might register a potential rebound to the BTC but a break could trigger further losses.

The biggest concern now is whether Bitcoin can hold support at $109,000. In case of a success, Bitcoin will be able to aim at the levels of $112,000 and $115,000 above. Nonetheless, a fall to $107,000 and $106,000 could ensue once the price does not sustain this phenomena. 

$BTC is hovering just above its support level.

If this level holds, bitcoin could rally towards $112,000.

In case of a breakdown, BTC will retest $101,000 support region before reversal. pic.twitter.com/2HOLgpKpBL

Bitcoin Faces Indecision: Key Volume Zones and Breakout Potential

CryptoRobotics highlighted that Bitcoin exhibited indicators of indecision in the course of Thursday with a false break up at $113,800. Following the test of this area, the price turned directly and plummeted to between the Pauls of $110,500-$111,600, where considerable trading volume had been developed. 

Source: X

One of these places is the volume zone between $112,000 and $111,300. In the event that BTC could rally out of this area, a more significant resistance may be reached. Such a breakout WOULD probably enhance the possibility of a rise of BTC. But a decline in these levels might result in a further slump.

Bitcoin Faces Liquidity Strain and Investor Sentiment Shift in September

The week started off with a fall of over 2% on Monday resulting in the biggest liquidation occasion of the year: the liquidation of as much as $1.65 billion long and only $145.83 million short positions were wiped out. 

This placed emphasis on the over-bullish market sentiment that soon turned around, changing traders expectations. By Thursday BTC were below the price of $109,000 and yet another $1.09 billion positions were liquidated.

Source: Coinglass

With the mass liquidations, however, the Exchange Liquidity Ratio (ELR) of BTC kept its level of 0.285 on Friday, several days after the annual high of 0.291, reached on September 11. Nevertheless, this is still below the current all-time jump of 0.358 in 2011. 

Source: CryptoQuant

BTC has traditionally had a difficult month in September, with an average return of  negative 3.39%. BTC so far has risen 1.17% this month, yet it is exposed to negative monthly performance at the wealth of the rule, which is expected to close the month. 

Source: Coinglass

The drop is also accompanied with a failing institutional demand with Bitcoin spot ETFs recording $484.24 million in outflows up to Thursday. This was after four weeks of positive inflows, and investor sentiment had changed.

The future of BTC looks uncertain given that the market is struggling through support and resistance levels. The next few days would tell whether BTC would continue working on the current level or would face even more changes.