Bitcoin tests $109,000 and traders are waiting to buy the signal for $112,000

• Bitcoin prices fell nearly 6.50% this week, driven primarily by liquidation of their strengths.
• Analysts focus on a support level of $109,000, and on potential downsides if it's broken.
• The $484 million outflow from Bitcoin ETFS highlights a weaker institutional demand this week.

The market has witnessed a major change in Bitcoin, falling to $109,000, with a 6.50% drop this week. The dip follows a massive liquidation event in the cryptocurrency market. Most of the losses have been in a long position, reflecting a shift in market sentiment. Crypto analyst TED highlighted the $109,000 support level as a key point in the focus. If Bitcoin maintains this level, it may be possible to rebound.

Analysts suggest that if this support is retained, Bitcoin could target upward levels of $112,000 and $115,000. However, if prices break this support it could drop to another $107,000, with $106,000 likely.

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Bitcoin's false breakout and major support levels

Crypto Robotics observed Bitcoin's movement on Thursday, noting the false breakout. Bitcoin tested the $113,800 zone before quickly flipping. Prices then fell from $111,600 to the $110,500 area. This price action has confirmed market imbalances and a lack of sustained momentum beyond critical levels.

Current market outlook suggests a potential reopening of purchases if certain levels are retained. A critical volume zone formed between $112,000 and $111,300. Farewells from this region will help increase the likelihood that Bitcoin will gather in higher resistance. Analysts say it can take a long range to consolidation above the zone, or a long range if prices respond that way.

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However, if you can't maintain this level, there are more potential risks on the downside. The next support level trader is watching around $108,000. Failure here can result in another round of sales pressure and price fluctuations.

The sudden decline of Bitcoin and market changes

Bitcoin held the week on Monday with a decline of more than 2%. The drop spurred the biggest one-day liquidation event of the year. Long worth $1.65 billion has been settled. A short position worth just $145.83 million has been settled, indicating the market is bullish. This turn in the market has quickly changed traders' expectations this week.

Related: The crypto market has reached a $1.65 billion liquidation as Ethereum leads

The decline continued, with Bitcoin falling below $109,000 on Thursday. Over $1.09 billion positions were settled during another sale. The market has consistently shown bearish feelings throughout the week. There were questions about whether current price levels are viable and whether there was strong market support.

Source: Coinglass

Even after mass liquidation, Bitcoin's ELR remained at 0.285 on Friday. This was close to the annual high of 0.291 set on September 11th, but below the all-time high of 0.358 set in 2011. This indicates that (although in the leveraged position) the trader has not grown in such a way that it acts as a catalyst for another decline drop.

Source: Cryptoquant

Historical data from Coinglass shows that September has traditionally been a difficult month for Bitcoin, recording an average return of -3.39%. Bitcoin has increased by 1.17% this month, so be careful. As typical at this point in the calendar, the moon may still end in negative territory.

Source: Coinglass

The weakening of institutional demand also contributed to lower Bitcoin prices. Meanwhile, Bitcoin spot ETF saw a $484.24 million leak by Thursday. This concludes the four-week positive influx, suggesting that investors are changing feelings. Further outflows could result in more price fluctuations and deeper corrections.

Source: SOSO value

The outlook is vague as investors see Bitcoin rising and falling. The ratio of purchase-selling pressures could define the next move for Bitcoin in the short term. Key support and resistance levels must be closely monitored by traders when taking future positions.