Summary: Bitcoin price could retest $110k amid market cooling, analyst warns

Get ready for some turbulence in the crypto market! Bitcoin just experienced a significant price drop, plummeting nearly 3% to $115,376, marking its lowest point in two weeks. This sharp correction, which erased close to $4,000 in value from a recent peak, appears to be driven by massive profit-taking from large institutional holders. Notably, blockchain firm Lookonchain reported that asset management giant Galaxy Digital offloaded a staggering 30,000 BTC, valued at over $1.15 billion, to centralized exchanges and OTC platforms in a single day. Experts are now highlighting a "cooling" market, suggesting this isn't necessarily a dire sign but a "healthy reset." Valentin Fournier, lead research analyst at BRN, notes weakening trading momentum and slowing ETF inflows, calling it a necessary flush of excessive long positions. He warns that this period of weakness could see Bitcoin retest the critical $110,000 support zone in the upcoming trading sessions. The downward pressure wasn't exclusive to Bitcoin; most altcoins, including XRP, Solana, and Dogecoin, also recorded losses. However, Ethereum emerged as a rare gainer, showing resilience amid the market slump. Dean Chen, a crypto analyst at Bitunix, attributes the broader pullback to natural profit-taking after an extended rally and a "liquidity sweep" targeting overleveraged positions. He stresses that despite the dips, prices remain well-supported above key levels, indicating a consolidation phase rather than the onset of a full-fledged bear market. The market is simply clearing the decks, potentially setting the stage for renewed accumulation once the current uncertainty disperses.