Bitcoin drops below $112k after a sharp support break, triggering roughly $600M in realized losses and $475M in long liquidations; traders now view $110k as the immediate defense level to prevent a deeper slide toward $105k–$100k.
-
$112k break sparked $600M in Realized Losses and a $475M long-liquidation sweep.
-
Short-term support sits at $110k; a decisive breach could open $107k–$105k as the next demand zone.
-
ETH is drawing larger flows (~$0.9B/day) while ETH ETFs pulled >$1B across four transactions, signaling rotation away from BTC.
Bitcoin drops below $112k, $600M losses and $475M liquidations; watch $110k defense — read market flow analysis and key levels. Stay informed.
What happened when Bitcoin dropped below $112k?
Bitcoin drops below $112k after a failed retest of the support, triggering a rapid risk-off rotation that recorded roughly $600 million in Realized Losses and a $475 million sweep of leveraged long positions. The move left $110k as the immediate on-chain and technical defense for bulls.
Why did the break below $112k trigger heavy losses and liquidations?
On Aug 24, BTC broke the $112k support and failed to hold the level on subsequent retests. This flipped market structure bearish, forcing HODLers with higher cost basis to exit and producing nearly $600M in Realized Losses.
That washout coincided with a concentrated $475M long-liquidation sweep, the largest leveraged-long flush since April’s tariff-driven volatility. Market indicators at press time: Crypto Volatility Index (CVI) 47.69 and Fear & Greed Index 47 — both pointing to moderate chop rather than full-scale panic.
How fragile is Bitcoin’s market structure now?
Bitcoin’s structure turned fragile after a failed retest of $112k. On Aug 2, BTC retested $112k following a peak at $123k and then rallied 10.7% to a fresh ATH; the latest retest didn’t hold, revealing a shift in supply-demand balance.
Three consecutive sessions of lower lows—wicks to $110,305, $110,185 and $108,761—showed bears probing liquidity pockets just under $110k and left short-term support strained.
Source: TradingView (BTC/USDT)
When could Bitcoin risk a $100k slide?
Absent a macro catalyst such as a Fed pivot, Bitcoin risks a deeper slide toward $100k if $110k fails. Open Interest remains muted, meaning leverage hasn’t aggressively re-entered; that can limit cascade risk but also delay a strong bid.
Market gauges show moderate volatility (CVI 47.69) and neutral sentiment (Fear & Greed 47), indicating the door remains open for either recovery or further weakness depending on flows and macro news.
Why are flows favoring ETH over BTC?
Capital has rotated into Ethereum, with flows into ETH running about $0.9B per day and ETH ETFs accounting for more than $1 billion across the last four transactions. This rotation is shifting marginal liquidity into ETH and away from Bitcoin, pressuring BTC’s relative performance.
Source: X (Willy Woo)
Frequently Asked Questions
How big were the liquidations when BTC fell under $112k?
Long liquidations totaled about $475 million following the support break, representing a concentrated leveraged washout that amplified the price decline and increased short-term volatility.
What should traders watch to confirm a recovery?
Traders should watch sustained bids above $112k, rising Open Interest with constructive volume, and a drop in realized losses. A shift back to BTC inflows and reduced ETH dominance would also signal recovery potential.
Key Takeaways
- Support break and losses: $112k gave way, creating ~$600M in Realized Losses and $475M in long liquidations.
- Critical level: $110k is the immediate defense; a break risks $107k–$105k and possibly $100k on a larger macro sell-off.
- Flow dynamics: Ethereum is currently attracting larger flows (~$0.9B/day) and ETF inflows, shifting marginal capital away from BTC.
Conclusion
Bitcoin’s drop below $112k exposed fragile market structure and forced a meaningful risk-off rotation, generating substantial realized losses and liquidations. With $110k the near-term line in the sand and ETH drawing outsized flows, the market needs a macro catalyst or renewed BTC inflows to re-establish bullish momentum. Monitor on-chain metrics, ETF flows, and $110k support for the next directional clue. COINOTAG will continue to track developments and update this story as new data emerges.
