Bitcoin has broken below the 100-day moving average at $113.4K, signaling growing bearish sentiment after the recent sell-off. The price is now consolidating in a critical zone where demand levels will dictate the next directional move.Technical AnalysisBy ShayanThe Daily ChartOn the daily timeframe, Bitcoin has dropped beneath the 100-day MA, leaving the price caught between the 100-day ($113K) and 200-day ($104K) moving averages. This range often acts as a “no man’s land,” reflecting indecision until either buyers or sellers reclaim momentum.The descending channel structure remains intact, suggesting persistent downward pressure unless bulls can defend the channel’s lower boundary near $109K. Holding above this region is essential to prevent deeper tests toward the 200-day MA and the $100K–$102K demand zone.Notably, there is a visible sell-side liquidity pocket below $107K, which could draw the price lower in a liquidity sweep before any major reversal attempt unfolds.The 4-Hour ChartOn the 4-hour timeframe, Bitcoin was rejected aggressively from $117K, triggering a cascade of selling. The decline has brought the price into a bullish flag structure, with BTC now hovering just above a key demand zone below $110K.This area is vital for preserving bullish potential. If buyers defend it successfully, Bitcoin could stage a rebound toward recent highs. However, a breakdown here would likely accelerate the move toward the deeper liquidity pool near $100K, aligning with the 200-day MA. The next leg will depend on whether demand can withstand continued sell pressure or if sellers push the market into fresh lows.Sentiment AnalysisBy ShayanThe Binance BTC/USDT liquidation heatmap (2-week view) reveals how recent volatility has been liquidity-driven. A substantial cluster of liquidations has formed above the $117K swing high, where aggressive selling forced longs into liquidation. This band highlights the heavy concentration of stop-losses and overleveraged longs that amplified the rejection.In contrast, the heatmap shows no major liquidity clusters below the current price, implying that sellers may have already exhausted near-term downside liquidity. With Bitcoin stabilizing around $109K, this absence of downside targets may temporarily limit further declines, unless fresh order flow builds below.For now, the market remains defined by this imbalance: the $117K liquidity band overhead acts as a cap where supply dominates, while the $109K demand base must hold to avoid a deeper slide toward the $100K zone.The post Bitcoin Price Analysis: BTC Sinks Below Crucial Support – What’s Next? appeared first on CryptoPotato.