Bitcoin Falls Below $110,000, Could Test $100,000 as Liquidity and Support Concerns Grow

• Bitcoin slips under $110,000, sparking liquidity and support-level concerns.

• Major exchanges report heightened trading activity and volatility; no executive commentary has been released.

• On-chain indicators show falling liquidity and lower TVL in BTC-anchored DeFi pools, suggesting possible rapid outflows.

Bitcoin price falls below $110,000, testing market support and liquidity—read analyst context and risk guidance. Stay informed with COINOTAG updates.

What happened when Bitcoin fell below $110,000?

Bitcoin price fell beneath the $110,000 threshold and is trading around $109,400, the lowest level since early September. This decline pulled liquidity from BTC-anchored DeFi pools and triggered correlated drops in major altcoins, prompting traders to reassess short-term support levels and risk exposure.

How are other cryptocurrencies reacting to the drop?

Ethereum, Solana, Dogecoin, Avalanche and Sui all showed notable declines as traders adjusted positions. On-chain metrics indicate falling Total Value Locked (TVL) in BTC-anchored pools and thinner order books on several exchanges. Historically, similar deleveraging events have produced rapid outflows from BTC-pegged derivatives.

Why does this dip matter for market stability?

The move below $110,000 reduces visible buy-side liquidity and increases the likelihood of stop-loss cascades if momentum continues. Institutional flows are a key variable; detailed reactions from institutional investors are pending, which leaves short-term direction dependent on liquidity re-entry or continued selling pressure.

What are traders watching now?

• Support levels: $105,000 and $100,000 are primary technical levels under observation.
• Derivatives flows: Spikes in funding rates or large liquidations could amplify moves.
• On-chain liquidity: Declining TVL and thinner order books increase volatility risk.

Frequently Asked Questions

Will Bitcoin drop further after this decline?

Further declines are possible if liquidity remains thin and leveraged positions continue to unwind. Traders should monitor support at $105,000 and $100,000 and watch for increases in exchange inflows and liquidation events.

How quickly can markets rebound after this move?

Rebounds can be rapid if buying pressure returns, but recovery timing depends on liquidity, institutional participation, and macro risk sentiment. Historically, rebounds have occurred within days to weeks after sharp deleveraging cycles.

What role do on-chain metrics play right now?

On-chain metrics like TVL, exchange balances and derivatives open interest help gauge liquidity and pressure. Falling TVL in BTC-anchored pools and lower exchange order-book depth increase downside risk.

Key Takeaways

• Immediate impact: Bitcoin trading under $110,000 reduces visible liquidity and heightens volatility.
• Market breadth: Major altcoins followed Bitcoin lower, reflecting correlated risk across crypto markets.
• Trader action: Review leveraged positions, monitor on-chain liquidity and set disciplined risk limits.

Conclusion

Bitcoin’s drop below $110,000 is a clear market signal that liquidity and support levels are under pressure. COINOTAG will monitor on-chain metrics, derivatives flows and institutional activity as they develop. Traders should prioritize risk management and follow verified market data for updates.

Publication date: 2025-09-26 | Author: COINOTAG