Bitcoin slipped below the $110,000 mark today, marking a 2.2% dip over the past 24 hours to settle at $109,500. This decline has wiped out half of the gains achieved earlier this week, as the cryptocurrency soared to $112,600 on Wednesday. The retreat comes amid growing concerns of a deeper pullback, with market analysts eyeing September—historically a weak month for Bitcoin—as a potential period of further decline. As explored in our recent coverage of Bitcoin Risks Deeper Drop Toward $100,000 Amid Whale Rotation Into Ethereum, the market dynamics suggest a cautious approach.
Market Dynamics and Analyst Insights
As the cryptocurrency market stumbled, other major digital assets such as Ether (ETH), Solana (SOL), and Cardano (ADA) also saw declines of over 3% in the past day. Digital asset treasury stocks weren’t spared either. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, saw a 3.2% drop and is now down 30% since July. Meanwhile, Japan-based MetaPlanet tumbled 7%, trading 60% lower than its peak in June, and KindlyMD (NAKA) slid another 9%, marking a 75% drop since mid-August. Ether-focused vehicles BitMine (BMNR) and SharpLink Gaming (SBET) fell between 8% and 9%.
A recent report from Bitfinex highlights that Bitcoin has entered its third consecutive week of retracement from its August all-time high of $123,640. Historically, bull-market corrections average around 17% from peak to trough, suggesting that the market might be nearing its typical correction limit. However, analysts caution that a deeper pullback could be on the horizon. The short-term holder realized price—a metric representing the cost basis of newer investors—sits near $108,900. Should Bitcoin fall below this level, analysts warn it could pave the way for further retracement, with a dense supply cluster between $93,000 and $95,000 potentially offering a more substantial support level. For further insights, see Pundit Calls Bitcoin Price Crash Below $93,000, Reveals Bear Targets From Here.
Historical Context and Future Outlook
The market’s current turbulence coincides with gold’s breakout to new records above $3,500, as investors seemingly redirect capital from riskier assets to traditional safe havens. This shift underscores a broader sentiment of caution among investors, particularly as they navigate the historically volatile month of September.
Yet, not all are sounding the alarm. Joel Kruger, a market strategist at LMAX Group, suggests that September could be a month of consolidation, potentially setting the stage for a stronger fourth-quarter performance. “If ETF inflows, corporate treasury allocations, and regulatory tailwinds come into play, this year’s correction might be shallower,” Kruger noted.
While the landscape appears fraught with uncertainty, it’s not without its potential bright spots. The ongoing interest in Bitcoin ETFs, along with corporate and institutional adoption, could offer a counterbalance to the current bearish sentiment. However, the immediate future remains hazy, raising questions about whether the market can sustain its resilience in the face of these headwinds.
The present market scenario invites a blend of skepticism and curiosity, as the crypto community watches closely to see how these dynamics unfold. Will Bitcoin find its footing in the coming weeks, or will it succumb to the pressures of historical trends and broader market influences? As the month progresses, these questions will undoubtedly shape the conversations among investors and analysts alike.
Source
This article is based on: Bitcoin Slips Below $110K as Analysts Weigh Risk of Deeper Pullback
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Hovers Around $107K as Weakest Month for Crypto Begins
- Bitcoin Mirrors Historical Pullback Ranges – Healthy Correction Or Trouble Ahead?
- Bitcoin Price Analysis: Will a Key Support Break Trigger More Losses for BTC?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
