Bitcoin has encountered selling pressure this week, with the price dipping under the $110,000 mark and raising concerns among traders about the cryptocurrency’s immediate trajectory. Market data indicates that a significant Bitcoin whale has continued to augment its short exposure, intensifying bets on a further decline in BTC’s value.
Following Tuesday’s Wall Street opening bell, BTC/USD dropped by over 3%, revisiting multi-week lows as the market showed signs of heightened volatility. Analysts and traders are cautiously advising a defensive stance due to the fragile market conditions.
One notable development attracting attention is the activity of an influential Bitcoin whale who initially opened a short position last week prior to a large $20 billion liquidation event. Recent reports reveal that this trader has amplified their short exposure, with a leveraged position valued close to $500 million by Tuesday. This sizable bet indicates continued confidence in downward pressure on Bitcoin’s price.
Market participants observed a sell-off shortly after the U.S. market opened, causing prices to sweep through the $110,000 level. However, some passive buying and absorption of sell orders were seen, according to trader commentary sourced on social platforms. These dynamics underscore a tactical struggle between bullish absorption and bearish momentum.
Other risk assets appeared to share the downward trend on the same day. U.S. equity markets fell at the open, while gold retreated from a recent record near $4,180 per ounce, reflecting a broader risk-off sentiment among investors.
Technically, attention is turning to the $107,000 price point as a potential next support level. The co-founder of Material Indicators, a market analytics firm, noted that Bitcoin is approaching a fourth test of support near $109,000 but cautioned that this level may not hold. The $107,100 region, where the 200-day simple moving average converges with a significant multi-year chart level, is being closely watched as it may serve as a critical floor.
Moreover, Bitcoin’s yearly open sits just below $93,500 and continues to be recognized as a key level in assessing longer-term market health. Trendlines such as moving averages and the collective cost basis of short-term holders also play important roles in shaping near-term price behavior.
While some traders note that volume is declining at major support levels, signaling a potential reversal pattern, others recommend caution given ongoing liquidation cascades and weak market structure.
As the market remains unsettled, investors and traders are advised to maintain a low-risk approach. The prevailing uncertainty calls for careful assessment rather than aggressive positioning, emphasizing risk management.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Market conditions can change rapidly, and readers should conduct their own research before making financial decisions.
