Bitcoin has experienced significant selling pressure following a fall below the $109,000 mark. This drop triggered massive liquidation events across the market, with over $700 million in long positions wiped out within 24 hours according to Coinglass. Analysts warn that Bitcoin’s price must hold above the crucial support level of $106K-$108K or risk a deeper correction towards $100K. Trading activity was further amplified by the actions of a large-scale Bitcoin whale, who sold nearly 24,000 BTC worth over $2.7 billion in a single transaction. This move pushed Bitcoin to its seven-week low and caused $205 billion to be erased from the total crypto market cap in a single day. The rapid decline sparked a chain reaction across exchanges, leading to forced selling by traders at a loss. Altcoins suffered even steeper losses, with Solana, Dogecoin, and Cardano all declining significantly. However, some analysts argue that the current correction is still smaller than Bitcoin’s historic crashes of 2017 and 2021. Despite this, the sheer size of the whale’s move has raised concerns about potential market volatility in the near future. On a more positive note, Coinbase Premium Index flipped positive again after weeks of weakness. This signifies a resurgence of US-based Bitcoin demand. Traders often view a positive Coinbase Premium as a bullish signal due to it showing American investors are buying BTC at higher prices. Coupled with surprising inflows into Bitcoin ETFs, the market may be poised for a rebound. The overall market sentiment remains cautious, however. Bitcoin charts have exhibited similar patterns to its Q2 retracement earlier this year, where a similar crash to $98K followed a peak near $112K. Analysts from CryptoQuant noted that the chart exhibits lower lows and false capitulation signals, reminiscent of previous downturns in Bitcoin’s history. These signals hint at a potential short squeeze as heavy short positions have been stacked above $114K. If Bitcoin rallies back to that zone, these shorts could be liquidated, fueling further price increases. While the market is currently caught between fear of further liquidation and optimism for a rebound, traders remain cautious about the trajectory ahead. The key factors will likely be whether whales continue selling or take a step back from the market. Coinbase flows and ETF demand indicate strong buyers are waiting in the wings, ready to capitalize on any upcoming opportunities. Ultimately, Bitcoin’s next move depends on how bulls manage support levels and turn the current losses into the fuel for the next rally.