Key Takeaways
Bitcoin slid under $112K with $600 million in losses and $475 million liquidations. Traders now watch $110K as key defense against deeper downside.
On the 24th of August, Bitcoin [BTC] broke below $112k. And it wasn’t just another dip. Instead, it triggered a clear risk-off rotation.
The move was quickly validated as nearly $600 million in Realized Losses hit the market the next day, marking the month’s biggest flush.
The fallout? A $475 million Long Liquidation sweep followed, the deepest washout of leveraged longs since the April tariff-driven FUD.
In short, one support break was all it took to set off a sharp flush, with $110k now the critical line on the chart.
Bitcoin’s fragile market structure exposed!
One look at Bitcoin’s chart shows why $112k carried weight.
On the 2nd of August, BTC retested this support after topping out at $123k just twenty days earlier, and from there, it ripped 10.7% in two weeks to notch a fresh all-time high.
However, when the next retest failed to deliver a similar bounce, market structure flipped bearish. As confirmed by $600 million in Realized Losses, as HODLers with higher cost basis rushed to exit
Source: TradingView (BTC/USDT)
The result? Bitcoin posted three straight sessions of lower lows.
The first wick tapped $110,305, the second $110,185, and the third stretched down to $108,761. Naturally, that left short-term support under strain, with bears pressing into liquidity pockets just below $110k.
Simply put, BTC is clinging to $110k as its last near-term defense. If this level gives way, the path opens for a deeper drawdown into the $107k-$105k zone where heavier bid interest is likely to emerge.
BTC risks $100k slide without macro boost
The Crypto Volatility Index (CVI) read 47.69, at press time, showing moderate chop in the market
Even after the break, panic hadn’t kicked in. The Fear & Greed Index held neutral at 47, up four points from yesterday.
Spot ETFs flipped positive too, signaling steady bid-support creeping back. Meanwhile, Open Interest (OI) stayed muted, meaning leverage hasn’t crowded back in yet.
On top of that, this kept BTC structurally bearish—though any pickup could quickly flip the bias.
Flows favor ETH, not BTC
Source: X (Willy Woo)
However, one key headwind for Bitcoin remains the ETH/BTC ratio.
Flows into Ethereum [ETH], running about $0.9B per day (silver), are now catching up to BTC’s inflows (orange).
On top of that, while BTC ETFs have turned positive, ETH ETFs have raked in over $1 billion across the last four transactions, showing capital rotating aggressively into ETH.
Having said that, unless a macro catalyst like a Fed pivot lands, whales are likely to keep risk-off flows rotating into Ethereum, leaving Bitcoin exposed to a deeper slide toward $100k.
