Bitcoin Price Drops to $108,000 — Analyst Warns of Potential Sub-$100K Correction
The Bitcoin (BTC) market experienced a sharp pullback over the last 24 hours, with prices sliding from $114,000 to $108,000 — a 5% decline that erased nearly $120 billion from its total market capitalization.
As volatility returned to the crypto space, analysts are sounding cautious, suggesting that a retest below $100,000 could occur if the benchmark cryptocurrency fails to hold its current support range.
Profit-Taking and Macro Jitters Pressure BTC
Following a week of strong gains driven by institutional inflows and ETF demand, Bitcoin is now facing broad profit-taking.
Market data from CoinGlass shows over $420 million in leveraged positions were liquidated in the past 24 hours, with long traders making up the bulk of the losses.
At the same time, the broader risk market has turned defensive as investors weigh ongoing Federal Reserve policy uncertainty and renewed geopolitical tensions in the Middle East and Asia.
“The market had been pricing in a very dovish Fed narrative, but yields remain elevated and risk assets are recalibrating,” said Adam Cochran, managing partner at Cinneamhain Ventures.
“Bitcoin is holding relatively well given how much leverage had built up since September.”
Technical Outlook: Bulls Defend Key Support
Technically, Bitcoin’s price is hovering around the $108,000–$109,000 zone — a region that previously acted as short-term resistance before being reclaimed earlier this month.
If the level fails to hold, analysts warn BTC could retrace further toward $103,000 or even test the psychological $100,000 support in the coming days.
Michaël van de Poppe, founder of MN Trading, said in an X (Twitter) update that “Bitcoin is consolidating near major support; losing this range could open the door to sub-$100K, but structure remains bullish long-term.”
He added that a rebound above $111,000 would invalidate the bearish scenario and could re-ignite momentum toward the $120,000–$125,000 range.
Market Sentiment Turns Neutral
After weeks of excessive optimism, sentiment indicators are cooling. The Crypto Fear & Greed Index dropped from 85 (“Extreme Greed”) to 64 (“Greed”), reflecting reduced risk appetite among traders.
Funding rates on perpetual futures have also normalized after hitting overheated levels last week, a sign that leveraged traders have been flushed out.
Despite short-term weakness, on-chain metrics show strong fundamentals. According to Glassnode, long-term holders continue to accumulate BTC, and exchange outflows remain elevated — indicating that investors are buying dips rather than panic-selling.
ETF Inflows Remain Resilient
Spot Bitcoin ETFs in the U.S. continue to attract capital, cushioning the price decline.
Data from Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) recorded $245 million in net inflows on Wednesday, even as BTC slipped below $110,000.
These steady inflows signal that institutional appetite for Bitcoin remains robust despite macro-driven volatility.
“This is not a panic-driven move — it’s a technical correction,” said James Butterfill, head of research at CoinShares.
“ETF participation and corporate adoption trends still point to long-term strength.”
Key Levels to Watch
| Level | Significance |
|---|---|
| $108,000 | Immediate support (currently testing) |
| $103,000 | Next key support, previous breakout zone |
| $100,000 | Major psychological level; potential bottom |
| $111,000 | Near-term resistance; breakout confirmation |
| $120,000–$125,000 | Bullish continuation target |
Analysts Eye “Healthy Correction” Before Next Leg Up
While some traders fear a deeper correction, others argue that the dip may serve as a healthy reset after Bitcoin’s rapid Q3 rally.
“Bitcoin was up nearly 40% in six weeks,” noted Ali Martinez, a market analyst at BeInCrypto. “Short-term corrections are normal and often necessary to build stronger momentum for the next breakout.”
Historical data supports this pattern — during prior bull runs, Bitcoin typically corrected 10–20% several times before reaching new all-time highs.
Bottom Line
Bitcoin’s retracement to $108,000 highlights the fragile balance between macro uncertainty, leveraged speculation, and long-term optimism.
If BTC can maintain support above $103,000, analysts expect the correction to be short-lived — potentially setting the stage for a rebound toward $120K before year-end.
For now, traders are watching the $100K threshold closely — a break below it could shake confidence, but also offer a rare buying opportunity in an otherwise strong bull market.
