Bitcoin hangs by a thread at $112,000 as analysts warn of deeper fall
TOI World Desk | Aug 26, 2025, 23:30 IST
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Highlight of the story: Bitcoin has dropped below the key \$112,000 support level, sparking warnings of a further decline to \$108,000 if \$110,500 doesn’t hold. Analysts cite weak on-chain support and increased ETF sell-offs. Meanwhile, Ethereum is gaining strength, driven by investor interest, ETF inflows, and favorable market signals, potentially outshining Bitcoin short term.
Bitcoin’s sharp dip below the $112,000 mark has raised concerns across the cryptocurrency market, with analysts warning that a steeper decline may be on the horizon. The leading cryptocurrency is showing signs of weakening momentum, both technically and through on-chain data, as key support levels come under pressure.
According to a report by Benzinga, crypto analyst Ali noted that Bitcoin is “hanging by a thread” after breaking below its critical $112,000 support level. The cryptocurrency briefly rebounded after touching this threshold, but the bounce failed to hold. Based on price patterns from July and a recent session wick, Ali identified $110,500 as the next significant interim support level.
Beyond the technical charts, on-chain data paints a more troubling picture. With the breach of $112,000, Ali pointed out a notable gap in demand between that level and $108,000. This suggests limited support to absorb any further selling pressure, making the path to a lower low more plausible if $110,500 fails to hold.
Meanwhile, Bitcoin exchange-traded funds (ETFs) reportedly sold about 8,850 BTC last week, increasing the available supply and adding downward pressure to the market. Despite the negative sentiment, traders appear to be buying the dip, as evidenced by a rise in open interest on Bitcoin futures. However, such leveraged long positions have historically intensified sell-offs when markets undergo liquidations.
Ali cautioned that a fall below $110,500 could open the door for a decline to $108,000. On the upside, he said Bitcoin would need to reclaim $112,000 and secure a four-hour close above $112,600 to counter the bearish trend and push toward $115,000.
In a separate analysis shared with Benzinga, Bitget CEO Gracy Chen offered a more neutral outlook. She expects Bitcoin to consolidate between $110,000 and $120,000 over the next one to two weeks, barring any sharp market disruptions.
Chen also noted that Ethereum is beginning to show signs of strength, with large investors shifting capital from Bitcoin into ETH. Ethereum’s rally past $4,300 was partially driven by dovish comments from Federal Reserve Chair Jerome Powell, which contributed to broader investor confidence. Chen projected a price target for Ethereum between $4,600 and $5,200, supported by ETF inflows and increasing network utility.
With investor attention gradually turning toward Ethereum, Bitcoin’s dominance may face further challenges in the short term. Market participants continue to monitor key levels closely as the next major move for the cryptocurrency sector takes shape.
According to a report by Benzinga, crypto analyst Ali noted that Bitcoin is “hanging by a thread” after breaking below its critical $112,000 support level. The cryptocurrency briefly rebounded after touching this threshold, but the bounce failed to hold. Based on price patterns from July and a recent session wick, Ali identified $110,500 as the next significant interim support level.
Beyond the technical charts, on-chain data paints a more troubling picture. With the breach of $112,000, Ali pointed out a notable gap in demand between that level and $108,000. This suggests limited support to absorb any further selling pressure, making the path to a lower low more plausible if $110,500 fails to hold.
Meanwhile, Bitcoin exchange-traded funds (ETFs) reportedly sold about 8,850 BTC last week, increasing the available supply and adding downward pressure to the market. Despite the negative sentiment, traders appear to be buying the dip, as evidenced by a rise in open interest on Bitcoin futures. However, such leveraged long positions have historically intensified sell-offs when markets undergo liquidations.
Ali cautioned that a fall below $110,500 could open the door for a decline to $108,000. On the upside, he said Bitcoin would need to reclaim $112,000 and secure a four-hour close above $112,600 to counter the bearish trend and push toward $115,000.
In a separate analysis shared with Benzinga, Bitget CEO Gracy Chen offered a more neutral outlook. She expects Bitcoin to consolidate between $110,000 and $120,000 over the next one to two weeks, barring any sharp market disruptions.
Chen also noted that Ethereum is beginning to show signs of strength, with large investors shifting capital from Bitcoin into ETH. Ethereum’s rally past $4,300 was partially driven by dovish comments from Federal Reserve Chair Jerome Powell, which contributed to broader investor confidence. Chen projected a price target for Ethereum between $4,600 and $5,200, supported by ETF inflows and increasing network utility.
With investor attention gradually turning toward Ethereum, Bitcoin’s dominance may face further challenges in the short term. Market participants continue to monitor key levels closely as the next major move for the cryptocurrency sector takes shape.