Bitcoin hanging by a thread at $112,000 — analyst warns a major crash could be next

Bitcoin crash warning 2025: Pseudonymous crypto analyst Ali highlighted that Bitcoin is “hanging by a thread” after falling below the $112,000 support level and pointed to both technical signals and on-chain data as reasons to be cautious about what’s next for the cryptocurrency market, as per a report.

Analyst Flags $110,500 as the Next Level to Watch

On Monday, Ali noted that while Bitcoin briefly bounced after touching $112,000, the recovery didn’t hold, as per a Benzinga report. Looking at previous price action from July and Sunday’s session wick, he suggested $110,500 as the next potential interim support level, according to the report.

But beyond the charts, on-chain data is giving more reasons for concern. With $112,000 now breached, Ali said there's a gap in support down to $108,000, meaning there’s limited demand to absorb any further selling pressure between those levels, as reported by Benzinga.


At the same time, the overall market dynamics have also been concerning as Bitcoin ETFs sold around 8,850 BTC last week, adding more supply to the market, according to the report.

ALSO READ: Bitcoin whale dumps 24,000 BTC, triggers flash crash, but still sits on $17 billion fortune

Traders Are Still Buying the Dip, But at What Risk?

Meanwhile, open interest in futures has gone up, even as prices have fallen. That suggests traders are placing leveraged long bets, trying to “buy the dip,” as per the Benzinga report. But historically, this kind of positioning has often made things worse when liquidations hit, according to the report.

Ali cautioned that if Bitcoin breaks below $110,500, the next major level to watch is $108,000, as per Benzinga. On the flip side, he said BTC would need to reclaim $112,000 and secure a 4-hour close above $112,600 to reverse the bearish momentum and open a path toward $115,000, as reported by Benzinga.

ALSO READ: Ethereum skyrockets 35% in a month! How did ETH hit an all-time high of $4,935.52?

Bitget CEO Sees Bitcoin Holding Steady in $110K–$120K Range

In an emailed statement shared with The Economic Times, Bitget CEO Gracy Chen said that, "Bitcoin is expected to trade in the $110,000–$120,000 range over the next one to two weeks, while Ethereum looks stronger, with targets between $4,600 and $5,200."

Whales Shift Focus to Ethereum

Chen also pointed out that Ethereum is showing more strength, with a price target between $4,600 and $5,200, as she explained that, "Ethereum’s rally past $4,300 signals robust ecosystem demand and the potential onset of an altcoin season. A key catalyst has been Federal Reserve Chair Jerome Powell’s unexpectedly dovish comments, which boosted risk-on appetite across markets," according to the emailed statement.

Supporting her view, on-chain data shows whales moving capital from Bitcoin into Ethereum, helping accelerate ETH’s momentum, according to the Benzinga report.

Chen also added, "This macro easing, combined with sustained ETF inflows and Ethereum’s growing utility, suggests ETH is positioned to outperform in the near term. Bitcoin should remain supported by institutional demand, but Ethereum’s fundamentals and ETF prospects give it an edge in leading the next leg of the market rally," as per her emailed statement.

FAQs

Why did Bitcoin fall below $112,000?
Analyst Ali says both technical signals and low on-chain support led to the drop.

Is Bitcoin expected to fall further?
Yes, if it breaks below $110,500, the next major support could be at $108,000.