Bitcoin Plunges Below $110K After Massive Whale Dump, Eyes $105K
Bitcoin (BTC) experienced a significant downturn, tumbling below the critical $110,000 mark on Tuesday. This sharp decline was triggered by a substantial whale transaction, where approximately 24,000 BTC, valued at $2.7 billion, was offloaded, sparking widespread market reaction and raising concerns about deeper corrections. The massive sell-off had immediate repercussions across the crypto market, wiping out an estimated $205 billion from total market capitalization and leading to over $930 million in liquidations of leveraged positions. This sudden plunge pushed Bitcoin to its lowest price point in nearly two months, with intraday lows hovering near $109,000. Market analysts, employing Elliott Wave Theory, suggest this could be a continuation of a Wave C correction, potentially targeting the $105,000 level next.
Technical Signals: $105K or $108K in Play?
Analysts point to Bitcoin’s failure to sustain above $117,000 over the weekend as a precursor to this downturn. The projected Wave C target of $105,000 gains credence as it often mirrors the length of Wave A in Elliott Wave patterns. This critical zone also aligns with Bitcoin's Point of Control since April and robust support identified by the anchored VWAP, strengthening the bearish outlook. However, a glimmer of hope remains around the $107,000-$108,000 range, which represents the 61.8% Fibonacci retracement of the June-to-August rally. Clustered buy orders at this level, as indicated by Bookmap data, suggest it could act as a strong reversal point if buyer demand intensifies.
Invalidation Levels and Market Outlook
Despite the prevailing bearish sentiment, market watchers suggest that a daily close for Bitcoin above $110,000 could swiftly shift market psychology, indicating a liquidity grab rather than a sustained downturn. A more definitive bullish signal would emerge if Bitcoin reclaims $112,000, which would invalidate the current Wave C bearish scenario and suggest the recent pullback was purely corrective. For the immediate future, traders are advised to closely monitor the $108,000 support zone. A breakdown below this level could accelerate selling pressure towards $105,000, while a decisive rebound could rekindle short-term upward momentum.
