Bitcoin Faces a Sharp Pullback
Bitcoin has once again slipped under pressure, sparking renewed debate about just how deep the current correction can go. After briefly trading below $109,300 — the old all-time high from January 2025 — BTC price action has investors questioning whether the bull run is truly intact or if another sharp drop is on the horizon. The cryptocurrency is currently hovering around $111,998, representing a 13% pullback from recent highs.
Key Trendlines Now at Risk
The latest decline has put several critical moving averages in danger. Traders are eyeing both the simple moving average (SMA) and the exponential moving average (EMA), which could soon flip from reliable support to resistance levels. According to market analyst Cryptorphic, Bitcoin’s dip below the 100-day EMA at $110,820 is a red flag. Historically, such breaks often precede short-term pullbacks, with the possibility of BTC sliding closer to $103,000 unless the level is quickly reclaimed.
The 200-day SMA as Last Defense
Another level catching trader attention is the 200-day SMA, which sits just below $101,000. Often considered the ultimate line of defense in bull markets, the 200-day SMA has historically acted as strong support. The last time Bitcoin traded below it was in mid-April, before staging a strong rebound. If BTC revisits this level, bulls will be hoping for history to repeat itself.
Speculative Investors Hold the Safety Net
Despite the bearish sentiment, some on-chain data suggests that short-term holders (STHs) could provide the cushion needed to stabilize prices. Axel Adler Jr. of CryptoQuant highlights that the $100K–$107K range is a strong support zone, aligning with both the 200-day SMA and the realized price of short-term holders. In simple terms, this reflects the cost basis for traders holding coins less than six months — and in past cycles, this group has often provided a solid safety net during corrections.
Deeper support around $93K
If Bitcoin fails to hold above the $100K threshold, analysts point to an additional support layer between $92,000 and $93,000. This represents the cost basis of investors who have been holding for three to six months. Losing this level would suggest a much deeper correction, testing the conviction of bulls and potentially delaying any strong rebound in the market.
Liquidations Amplify Volatility
The correction has already triggered massive long liquidations, with data from CoinGlass showing nearly $500 million in positions wiped out since Sunday. These liquidation cascades have punished overleveraged traders and added to short-term volatility. The sharp movements also raise the possibility of the reverse — a short squeeze — if conditions align in the coming days.
Could a Rebound to $114K be next?
Some traders believe the recent liquidity hunt to the downside may set the stage for a rebound. Exchange order books now suggest that most downside liquidity has been cleared, paving the way for short sellers to become the next targets. Market participant BitBull speculates that Bitcoin could rally toward $114K–$115K this week, sparking renewed momentum in altcoins as well. Analytics platform TheKingfisher supports this view, pointing to a “huge wall” of short liquidations waiting above current levels, which could act as fuel for a sharp upward move.
Testing Resilience at $100K
The next few days will be crucial for Bitcoin’s trajectory. If bulls defend the $100K–$107K zone, the market could stabilize and set up for another attempt at new highs. However, losing this range could drag BTC into a deeper correction toward $93K, shaking confidence across the broader crypto market. Traders and investors are now watching closely, as Bitcoin’s ability to reclaim its key averages will determine whether this is just another pullback — or the beginning of something more significant.
