The drop marks an 8.5% pullback from its mid-August peak and has triggered a broader market correction.
Data from CoinGlass shows nearly $451 million in liquidations across crypto markets in the past 24 hours, with the single largest Bitcoin order on Binance wiping out $9.7 million.
Analysts point to $112,000 as a near-term support level, warning that a break below $110,000 could fuel panic selling and open the path toward $100,000.
The latest slide was sparked by hotter-than-expected U.S. producer price index data, which rattled hopes for Federal Reserve rate cuts.
With the Fed’s Jackson Hole summit approaching, investors are treading cautiously, expecting policy signals that could sway risk assets.
Despite the short-term pressure, some analysts remain optimistic about Bitcoin’s trajectory heading into the final stretch of the year.
CoinCodex forecasts suggest momentum could return after the correction, setting up the potential for another rally in the months ahead.
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