Bitcoin's price stands at $110,360, down over 1.15% over the last 24 hours, while traders are awaiting the support zone at $112,000. With a current market capitalization of $2.19 trillion, and approximately 19.9 million BTC traded, the currency still sits at the top of the crypto sector, although the short-term outlook appears bleak.
Analysts see Bitcoin's price as 'hanging by a thread' after touching the lower limit of the support channel; a break of the $112,000 level may open the door to larger declines, with the range of $108,695-$110,000 seen as the last line of defense before slipping to deeper levels. The broader picture shows that institutional demand remains strong, but short-term traders are questioning whether this summer's upward wave has reached its end.
Technical forecasts for Bitcoin's price: Is a sudden drop looming on the horizon?
Technically, Bitcoin's price remains trapped within a descending channel after failing earlier this month to consolidate above $124,450, having drawn a series of lower highs, while the price currently stabilizes near $110,100.
Key technical levels:
The simple moving average measured over 50 days ($116,553): now represents upper resistance.
The pivot point at $112,000: represents the intersection of a previous trend line with a support level.
Support range $108,695-$110,000: critical ground before further declines.
Downside risks: $105,150 and $101,550 if the current support fails.
Momentum indicators suggest caution; the Relative Strength Index (RSI) stands at 38, indicating that the currency is in an over-sold territory without any positive divergence, while the MACD is negative reflecting downward pressure. Recent candles show indecision with long wicks from the bottom and long shadows from the top, reflecting a struggle between buyers and sellers.
#Bitcoin is testing key support near $110K after failing to hold $124.4K highs.
Daily chart shows a descending channel, RSI oversold (38), MACD still negative.
Break below $108.5K → $105K / $101K
Break above $116.8K → $120.9K / $124K
— Market at a decision point. pic.twitter.com/i7qj3Xsdmr
— Arslan Ali (@forex_arslan) August 26, 2025
If the support level holds, Bitcoin's price may rebound towards $116,850, where channel resistance meets the 50-day simple moving average. A firm break above this level would pave the way towards $120,900, then to the August peak at $124,450.
Conversely, a decisive drop below $108,695 would heighten concerns about a decline, potentially accelerating the descent towards $100,000, a level that might trigger a panic selling wave but could also attract institutional accumulation.
Bitcoin price forecasts (Bitcoin): towards $130,000 or $100,000?
The equation is binary: either the price maintains its support and forms a solid base, or a sudden drop pushes it to $100,000; if buying forces manage to push the price above $116,850, the price structure favors a new rise towards $124,000-$130,000 with the momentum restored.
However, a continuous break of support below $108,500 will place levels of $105,000 and $101,000 in the target zone, ultimately opening the door to test the psychological barrier at $100,000.
As long as institutional demand remains as a supportive anchor, any drop may be transient and temporary, but if the support level continues to fracture, the market may witness the most severe correction since the upward wave in June.
From our perspective, the current consolidation phase of Bitcoin's price does not signify a downward trend as much as it prepares for the upcoming upward wave. Whether the rebound starts from $110,000 or after sliding towards $100,000, the long-term path towards new highs remains firmly in place.
The post Bitcoin price forecasts (Bitcoin-BTC): The support level shows signs of weakness, is the market preparing for a rapid decline towards $100,000?
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