Bitcoin’s price has dropped sharply this week, falling over 8% in just one week after a prominent analyst predicted the move last Sunday. Currently trading below $107,000, Bitcoin is officially underwater for all investors who bought recently within the past month to six months. These individuals are now seeing unrealized losses. Despite this downturn, however, market sentiment remains relatively calm and there’s no panic selling or widespread capitulation. 1-month holders see a cost base of around $115.6K, while 3-month and 6-month holders respectively have costs of ~$113.6K and ~$107K. However, this relative stability is problematic – it signals to market makers that more significant losses are likely before the market truly bottoms out. 25% drawdowns in bull markets are typical, yet Bitcoin has only corrected around 10%. This suggests further pain ahead. 107K-$108.9K will be a critical level for Bitcoin to watch as it breaks, potentially leading to a drop to $90K-$95K, which aligns with the projected bottom of this phase. Market makers thrive on panic selling and currently, unrealized losses across the market are less than 1%, a laughably small number compared to the 30%+ losses seen in major corrections. September is expected to be a month of reckoning as selling pressure builds and losses deepen, leading to forced selling from weaker hands. This could drive Bitcoin even lower before a real recovery can begin.