Bitcoin Alert: Long Positions Liquidated and the Looming Threat of $110,000 – What Traders Need to Know (August 2025)
- Bitcoin’s Rollercoaster: A Brutal Reminder for Traders
- Why $110,000 Is the Line in the Sand
- Bull vs. Bear: The Analyst Split
- Key Takeaways for Traders
- Q&A: Your Bitcoin Crash Questions Answered
Bitcoin’s recent volatility has traders on edge as long positions worth hundreds of millions were liquidated, pushing the price toward a critical $110,000 support level. Analysts are divided—some see a buying opportunity, while others warn of deeper corrections. Here’s a breakdown of the key events, data, and what might come next.
Bitcoin’s Rollercoaster: A Brutal Reminder for Traders
Just days after a rally fueled by Jerome Powell’s dovish remarks, Bitcoin nosedived on Monday, August 25, 2025, plummeting to $111,300. The drop triggered over $807 million in Leveraged derivative liquidations across the market, with $235 million from Bitcoin alone and $155 million from Ethereum. Data fromshows the sell-off was exacerbated by a "whale" dumping holdings during Friday’s bounce—proof that even short-lived optimism can backfire. As one BTCC analyst put it, "The market’s addiction to leverage turns minor dips into avalanches."
Why $110,000 Is the Line in the Sand
Order books reveal a wall of buy orders between $110,500 and $109,700, with weaker liquidity NEAR $108,000. Analysts like Jelle stress that holding Bitcoin’s monthly open at $111,900 is crucial. Below that, Captain Faibik (a pseudonymous trader with 200K followers) warns of a slide to $107K–$108K, citing weakening support. His tweet on August 25 went viral:Meanwhile, TradingView charts show a bearish divergence in momentum—a classic warning sign.
Bull vs. Bear: The Analyst Split
Not everyone’s panicking. Michael van de Poppe of MN Capital calls sub-$112,000 a "discount zone" for accumulation, while BitQuant holds firm on a $150K year-end target. Gert van Lagen adds context: "As long as bitcoin stays above $95K, the long-term parabolic trend is intact." But with on-chain data showing persistent selling pressure, the debate hinges on whether this is a healthy pullback or the start of capitulation.
Key Takeaways for Traders
1.: The liquidations highlight how overexposure amplifies losses.
2.: A close below could trigger algorithmic selling.
3.: Large holders’ moves still dictate short-term volatility.
For real-time data, checkor BTCC’s market dashboards.
Q&A: Your Bitcoin Crash Questions Answered
What caused Bitcoin’s sudden drop on August 25?
A combination of whale selling, leveraged position unwinding, and technical rejection after Powell’s rally. CoinGlass data confirms $807M in derivatives were liquidated.
Is $110,000 a strong support level?
Order book analysis shows concentrated buys near $110K, but weak liquidity below. If it breaks, the next major zone is $107K–$108K.
Are analysts still bullish long-term?
Yes, but cautiously. Targets like $150K assume Bitcoin holds $95K. Short-term, volatility is expected.
