Bitcoin Price Forecast: Essential Levels to Monitor
Bitcoin fell below $110K after a huge 24,000 BTC sell-off flooded the market. As a result, $550 million worth of long positions were liquidated.
The market remains volatile, with many traders on high alert, monitoring crucial support levels to determine if BTC can rebound or if further declines are imminent.
Summary
- BTC fell below $110K following a whale’s dump of 24,000 BTC, leading to $550M in long liquidations.
- The current price hovers around $111K–$112K, with cautious sentiment and heightened volatility.
- Leverage risks remain high, causing forced liquidations that amplify market fluctuations.
- Whale activity continues to exert supply-side pressure and introduce short-term instability.
- Key support at $112K has been breached — with BTC now trading below, the likelihood of a drop to $108K increases unless buyers intervene to regain lost ground.
Current BTC Price Scenario
As of Monday, August 25, 2025, Bitcoin (BTC) is trading between $111K and $112K following a significant drop beneath the $110K mark on Sunday. This downturn was sparked by a considerable sell-off of 24,000 BTC by a major holder, commonly known as a “whale,” triggering over $550 million in long liquidations across various exchanges.
Despite a slight recovery from its intraday lows near $110.9K, overall market sentiment remains fragile. Traders are on the lookout for stability while volatility stays elevated, creating uncertainty for the short-term outlook.
Key Indicators BTC May Continue to Be Volatile
While Bitcoin is exhibiting some recovery signs post-Sunday’s decline, several risk factors linger in the market. From significant sell-offs to excessive leverage and weak support levels, these indicators suggest that BTC’s price fluctuations may persist.
Sign 1 – $550M in Long Liquidations Reflect Market Vulnerability
The rapid increase in liquidations highlights the market’s overleveraged state. Many traders were taken by surprise, leading to cascading sell-offs as margin positions were liquidated. This forced selling has historically intensified downward movements and could recur if volatility continues.
Sign 2 – Whale Activity Indicates Supply-Side Risk
When a single wallet dumped 24K BTC (valued at over $2.6B), the entire market reacted. Large holders maintain the ability to cause swift market shifts — and if more start to sell, we might face another wave of instability. This has reignited discussions about the influence whales have over the market.
Sign 3 – Critical Support at $112K to Ward Off Further Declines
The $112K level has become a crucial short-term support zone. However, BTC has already dipped below this mark during intraday trading on August 25. Maintaining levels above this threshold in the coming sessions is vital; failing to do so may confirm a bearish trend.
Bitcoin Price Prediction Post-Flash Crash
With Bitcoin dropping below $112K, it’s likely we will test the $108K–$110K range soon. This area is shaping up to be a significant support level — if selling pressure continues, particularly in light of negative news regarding interest rates or regulations, it could become a key battleground for price movements.
Should BTC manage to rebound and stay above $112K, a short-term recovery might be on the table, potentially pushing toward the $116K–$118K range. However, for any rally to sustain, we need a calmer environment — reduced volatility, fewer whale-induced sell-offs, and an overall boost in market confidence.
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