Bitcoin Price Forecast: Analysts Warn Fall to $110,000 Could Be Prolonged as $7 Billion Liquidations Rock the Market

• Bitcoin is trading around $112,450, having recovered from a sudden 10% plunge that wiped out more than $7 billion in positions.
• Trump's 100% tariff on Chinese goods triggered panic selling, pushing BTC to a critical $110,000.
• The outflow of funds from the exchange of over $400 million signals accumulation, as “whales” buy the decline despite short-term caution.

Today, Bitcoin's price is hovering around $112,450, having recovered slightly from a sharp 10% plunge triggered by renewed trade tensions between the US and China. The selloff, which wiped out over $7 billion in leverage, sent Bitcoin plummeting from $120,000 to $111,100 before buyers intervened. This plunge marked one of the sharpest intraday declines of 2025, pushing Bitcoin to a key uptrend support level.

Bitcoin price faces major technical decline

BTC Price Analysis (Source: TradingView)

On the daily chart, Bitcoin has confidently broken below its 20-day and 50-day exponential moving averages (EMAs), which now serve as short-term resistance near $115,800 and $117,500. The price briefly broke the ascending trendline that has guided the rally since May, but closed just above it, maintaining structural integrity for now.

If BTC fails to reclaim the $113,500–$115,000 mark, momentum could quickly fade toward the 200-day exponential moving average (EMA) near $107,800—the next critical defensive zone. The on-balance volume (OBV) indicator remains elevated at 1.74 million, suggesting that despite intense selling, long-term holders have not yet capitulated.

Trump's tariff shock triggered a sudden collapse

Friday's market crash followed US President Trump's announcement of 100% tariffs on Chinese goods, which reignited fears of a global trade war. Cryptocurrency assets plummeted, with Bitcoin falling more than $12,000 in just a few hours.

This announcement came after markets had already weakened on reports of new Chinese controls on rare earth metal exports. Trump's late-evening post on TruthSocial, in which he confirmed the imposition of additional tariffs effective November 1, triggered panic selling in both spot and derivatives markets.

Analyst Bob Lucas called the event a “COVID-level nuclear explosion,” comparing it to the March 2020 crash. Other analysts, such as Ram Ahluwalia of Lumida Wealth, noted that “overbought conditions and rising leverage exacerbated the decline.”

The move highlights Bitcoin's continued sensitivity to geopolitical shocks, particularly when macroeconomic uncertainty collides with tight positioning.

Currency outflow indicates a decline in savings

BTC Netflows (Source: Coinglass)

Coinglass data shows a net outflow of $403.7 million on October 11, following a $522.9 million withdrawal recorded earlier in the week. This sustained outflow trend suggests that, despite the volatility, investors are withdrawing Bitcoin from exchanges—a sign often associated with hoarding or long-term holding.

While short-term traders experienced massive liquidations, supply chain data suggests that whales and long-term holders were net buyers near the $110,000 zone. Historically, deep liquidations of this magnitude have coincided with local lows, especially if they were followed by sustained outflows in subsequent sessions.

The technical picture is becoming cautious

Technically, Bitcoin remains at a critical turning point. Resistance levels are found at $115,800 and $117,500 (50-day and 20-day exponential moving averages), followed by $120,000, which serves as the upper rebound zone. On the other hand, the $111,000–$107,800 area forms the confluence of horizontal support and the exponential moving average, while deeper demand is located at $103,000.

The Relative Strength Index (RSI) has fallen sharply to the mid-40s, confirming a loss of momentum but not yet reaching oversold territory. The MACD remains at a bearish crossover, confirming the likelihood of continued consolidation unless BTC reclaims the $116,000 mark.

Outlook: Will Bitcoin Rise in Price?

Bitcoin's future direction depends on whether buyers can stabilize the price movement above the $111,000 support level and regain strength near the $115,000 zone. The current rebound is moderate, and market sentiment remains cautious following large-scale liquidations and macroeconomic uncertainty.

However, blockchain data showing steady outflows and consistent sales volumes suggests that large investors are continuing to accumulate funds. If Bitcoin rebounds from $117,500, a moderate rally to $120,000 could quickly begin.

Until then, traders should keep an eye on $111,000 as a key benchmark. A break below this level will likely open the door to $107,800 and even $103,000. Bitcoin remains under pressure for now, but its long-term uptrend remains structurally intact, which continues to favor a recovery once the macroeconomic situation stabilizes.

Source: cryptonews.net