Bitcoin "death line" $110,000 in crisis! Analysts warn of a further 15% fall, gold strongly breaks through $4,200.

In the latest round of crypto market liquidation events, Bitcoin prices have once again fallen to the key support level of 110,000 USD. Analysts warn that if this support level is breached, prices could dip further by 15%, reaching 96,530 USD. Meanwhile, as the “debasement trade” sentiment kicks in, gold prices have surged, breaking above 4,200 USD per ounce for the first time, highlighting the advantage of safe-haven assets over Bitcoin amidst increasing concerns about fiat stability. Although Fed Chairman Powell hinted that an upcoming rate cut could boost Bitcoin, the large accumulation of short positions and ETF outflows indicate that market sentiment remains cautious in the short term.

Short positions attack the $110,000 support level: Bitcoin faces a “life or death decision”

The latest pullback in Bitcoin's price is another significant test of the key support area of 110,000 dollars.

· Short positions attempted three times to fall below the key range

CryptoQuant's research director Julio Moreno pointed out that short positions are repeatedly attempting to push the Bitcoin price down to the key range of $110,000 to $108,000. He emphasized that this is the third such attempt, and prior to last Friday's market crash, there was a significant accumulation of short positions.

· Failed to recover $119,000, or dip to $96,500

Crypto analyst Ali Martinez stated that Bitcoin needs to reclaim the level of $119,000 to maintain its bullish momentum. He warned that on-chain data and price ranges suggest that if it fails to stabilize at this level, it could trigger a correction, causing the price of Bitcoin to fall to $96,530. This represents a risk of a further 15% decline from the current level.

· Bitcoin performance is under scrutiny

Bloomberg senior commodity strategist Mike McGlone has questioned the recent performance of Bitcoin, pointing out that despite Bitcoin taking on “more than double the risk,” its return since breaking through $100,000 is roughly the same as the S&P 500. He added that given most risk assets are expected to underperform gold in 2025, this trend could signal a potential “sell-off signal” for the broader market. Moreover, the outflow of funds from Bitcoin ETFs also indicates that institutions are selling off under the current market conditions.

The Strong Rise of Gold: Currency Devaluation Trades Dominate

As concerns about the stability of fiat currencies intensify globally, gold has gained a significant advantage due to its safe-haven properties.

· Gold breaks historical high

Gold futures prices have historically surpassed $4,200 per ounce for the first time, achieving nearly a 60% increase solely in 2025. The rebound performance of precious metals has outpaced major stock indices, with gold and silver's gains being more than four times that of the S&P 500.

· The core driving force of “currency depreciation trading”

As the value of the dollar continues to erode, gold seems to outperform other asset classes in the “currency depreciation trade”, and the latest fall in Bitcoin prices further widens the gap between the two.

Bitwise CEO Hunter Horsley commented, “This is all about fiat depreciation trades. All asset classes—stocks, real estate, encryption, commodities, foreign exchange, fixed income, credit, infrastructure—can and should be evaluated based on the extent to which they benefit from the ongoing and forthcoming fiat depreciation.”

· Weakening confidence in fiat

Analysts point out that both safe-haven assets and risk assets are strengthening simultaneously, reflecting growing concerns in the market about the stability of fiat. Gold and silver are performing strongly in a broader stock market rally, indicating that investor confidence in fiat is weakening. However, Fed Chairman Powell recently hinted at an imminent interest rate cut, which may boost Bitcoin's performance in the short term.

Conclusion

Bitcoin is at a critical short-term crossroads, with the $110,000 support level being key to determining whether it can avoid further falls. Meanwhile, the historic breakthrough in gold prices highlights the dominant role of “currency devaluation trades” in the macro narrative, reminding investors that Bitcoin is facing competition from traditional safe-haven assets. If Bitcoin can hold its key support and benefit from the Fed's dovish signals, it is expected to reverse the current downturn. However, in the context of short positions gathering and institutional outflows, caution remains the prevailing theme in the market.

This article is for news information only and does not constitute any investment advice. The encryption market is highly volatile, and investors should make cautious decisions.