Bitcoin experienced a sharp flash crash on August 24th, 2025, dropping to test key support levels near $110,000. The event triggered significant long liquidations with dominance spiking to 18%, the highest level seen in months, clearing out overleveraged positions. This deleveraging event particularly impacted newer investors, with those holding coins for less than a month facing average unrealized losses of 3.5%.
On-chain data reveals that 94% of traders have faced liquidation over the past three months during ongoing bidirectional liquidity hunts. While short-term holders (1-6 months) remain profitable with 4.5% gains, the newest investors have been largely flushed out, transferring coins from weak hands to stronger holders which typically reduces overhead supply pressure.
Technical analysis identifies a critical support zone between $100,000 and $107,000 where the Short-Term Holder Realized Price meets the 200-day simple moving average. The $108,800 level serves as a crucial bull-bear threshold, representing the cost basis for recent investors. A break below this level could trigger additional selling toward the $92,000-$93,000 range.
Currently trading around $110,360, Bitcoin sits approximately 13% below recent highs. Momentum indicators show caution with RSI at 38 (oversold but no bullish divergence) and MACD remaining negative. The market faces a binary outcome: either holding above support for a potential rebound to $124,450, or breaking down toward the psychological $100,000 level.