Bitcoin Price Crash Tests $110,000 Support as Gold Soars Amid Debasement Trade

Bitcoin’s price is once again testing crucial support levels at around $110,000 following a major crypto market liquidation event. Analysts warn of another potential 15% drop, with short traders piling in and threatening a further decline toward the $96,530 mark. CryptoQuant’s Head of Research, Julio Moreno, noted that this is the third major attempt by short traders to push BTC below the $110,000–$108,000 range, emphasizing a sharp increase in short positions ahead of last Friday’s crash.

Meanwhile, on-chain analyst Ali Martinez stated that Bitcoin must reclaim the $119,000 level to sustain its bullish outlook. Failure to do so, he warned, could result in another correction, aligning with data from Glassnode’s MVRV pricing bands that indicate a potential fall toward $96,530.

Bloomberg senior commodity strategist Mike McGlone questioned Bitcoin’s recent performance, noting that despite carrying “over twice the risk,” it has delivered similar returns to the S&P 500 since crossing the $100,000 milestone. With risk assets underperforming gold in 2025, McGlone suggested this could be a “sell bell” for broader markets. Institutional investors also appear to be exiting, as Bitcoin ETF outflows point to selling pressure amid current volatility.

At the same time, gold has surged as part of the ongoing “debasement trade,” benefiting from the weakening US Dollar. Gold futures broke records by surpassing $4,200 per ounce, soaring nearly 60% this year alone—outpacing equities, crypto, and other major asset classes. Bitwise CEO Hunter Horsley described the rally as evidence of global currency debasement concerns, noting that all assets are increasingly judged by their resistance to fiat erosion.

As investors flock to safe havens, the growing divergence between Bitcoin and gold underscores shifting confidence in fiat currencies—even as BTC’s next move hinges on reclaiming key resistance levels.