Bitcoin dips below $113K as panic-driven selling intensifies, but strong support between $107K–$110K and layered SMAs suggest disciplined buyers may find entry points if $107K holds; on-chain and sentiment metrics point to oversold conditions that historically precede rebounds.
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Bitcoin below $113K creates potential buying opportunity if $107K–$110K support holds.
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Short-term fear spikes coincide with on-chain signals showing low social conviction and elevated realized prices for short-term holders.
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Key technicals: 111-day SMA ~ $109,600, 200-day SMA ~ $100,400; drawdown from recent rolling high ~ 8.2%.
Bitcoin dips below $113K — assess $107K–$110K support, SMAs, and sentiment for tactical entries; actionable market analysis from COINOTAG.
What caused Bitcoin to dip below $113,000?
Bitcoin dipped below $113K due to a rapid shift in retail sentiment and profit-taking after failed attempts to sustain rallies above $115K. Short-term panic selling, amplified by social metrics and macro headlines, triggered a pullback into established demand zones between $107K and $110K.
How severe is current market sentiment and why does it matter?
Sentiment has moved from optimism to pronounced fear in 24 hours, per Santiment social metrics. Rapid sentiment swings compress liquidity and increase volatility. Historically, extreme fear readings often align with short-term local lows, creating tactical windows for patient investors.
Bitcoin dips below $113K as traders panic, but strong support zones and extreme fear may set up smart buying opportunities soon.
- Bitcoin fear is peaking as traders panic below $113K, but history shows such selloffs often open doors for patient buyers.
- Support between $107K and $110K is holding strong, giving long-term investors a possible chance to defend and add positions.
- Crowd psychology keeps driving short-term swings as greed sparks drops and fear often sets the stage for market rebounds.
Following a dramatic change in emotion brought on by the top cryptocurrency falling below $113,000, bitcoin traders are now dealing with fresh uncertainties. Once driving bullish momentum, retail traders have now become pessimistic as market anxiety grows. After weeks of turbulence, Bitcoin failed to maintain rallies over $115,000, which led to this shift.
Analysts believe the growing panic could signal a major opportunity for patient investors. The price correction now tests key support areas while social sentiment reaches its lowest since June 22, when geopolitical tensions caused panic sells.
Why did sentiment shift so quickly?
Santiment reported that retail traders made a complete 180 in attitude within the past 24 hours. The negative mood reflects maximum fear levels, often associated with potential rebounds. On June 22, fears of war after U.S. strikes on Iran caused a sharp dip, though the market recovered as the selloff proved exaggerated.
Source: Santiment
Market examples show how rapid mood swings matter. On July 9, crowd greed contributed to corrections despite easing U.S. tariff concerns. Excess social optimism often precedes short-term retracements, as observed again on August 18. Traders who rushed into dip-buying then faced immediate losses when Bitcoin sank further.
How reliable are technical levels around $107K–$110K?
Axel Adler Jr noted the pullback is moderate, roughly an 8% decline from the local peak. Bitcoin sits inside a concentrated demand band between $107,000 and $110,000. The 111-day Simple Moving Average is near $109,600 and short-term holders’ realized price is about $106,800, aligning with the demand zone.
Source: Axel Adler Jr
These technicals represent layered support levels. A breach below $107K would increase the likelihood of deeper drawdowns toward the 200-day SMA at approximately $100,400. The current drawdown of ~8.2% remains within typical correction ranges for this cycle.
Frequently Asked Questions
Is now a good time to buy Bitcoin dip?
Buying into a dip can be appropriate for long-term investors if positions are sized for risk and $107K–$110K support holds. Use staggered entries, confirm on-chain and sentiment signals, and set clear stop-loss rules to manage downside risk.
What indicators should traders watch during this pullback?
Monitor support bands ($107K–$110K), 111-day and 200-day SMAs, short-term holders’ realized price (~$106,800), and social sentiment metrics from Santiment. Combine technical and on-chain data before committing capital.
Key Takeaways
- Support zones matter: $107K–$110K is the primary demand band to watch for defensive buying.
- Sentiment is extreme: Rapid fear spikes can create tactical buying opportunities but increase volatility.
- Layer risk management: Use staggered entries, confirm with on-chain and technical indicators, and protect capital with defined stops.
Conclusion
Bitcoin’s dip below $113K reflects a sudden sentiment reversal that tests key support between $107K and $110K. Bitcoin technicals and on-chain metrics indicate this pullback is within a moderate drawdown range, offering potential opportunities for disciplined investors. Monitor SMAs, realized-price levels, and social sentiment; COINOTAG will continue to update coverage as conditions evolve.
Author: COINOTAG — Market Desk
Published: 2025-08-20 · Updated: 2025-08-20
