Bitcoin (BTC) tumbled below the critical $110,000 mark on Tuesday after a whale offloaded 24,000 BTC worth approximately $2.7 billion.
The massive sell order sparked a sharp market reaction, wiping out $205 billion from crypto market capitalization and triggering over $930 million in liquidations across leveraged positions.
This sudden downturn pushed BTC to its lowest levels in nearly two months, with intraday lows near $109,000. Analysts warn the correction could extend further, as technical patterns point to a possible continuation of the Elliott Wave C move toward $105,000.
Market analysts project that Bitcoin’s rejection at $117,000 over the weekend set the stage for this decline. According to Elliott Wave Theory, Wave C often mirrors Wave A in length, making the $105,000 zone a prime target.
However, a strong counter-argument exists. The $107,000–$108,000 range, representing the 61.8% Fibonacci retracement of the June-to-August rally, holds significant buying interest.
Data from Bookmap shows clustered orders at this level, suggesting it could act as a reversal point if buyers step in aggressively.
Such a move would indicate a possible liquidity grab rather than a full-blown Wave C continuation. A stronger confirmation would come if Bitcoin reclaims $112,000, signaling the downside break was corrective, not impulsive.
For now, traders are advised to watch the $108,000 support zone closely. A breakdown could accelerate selling pressure toward $105,000, while a decisive bounce might restore short-term momentum.
Bitcoin’s sharp sell-off gives a clear picture of the delicate balance between whale activity, technical structures, and macroeconomic uncertainty.
In the near term, analysts caution that downside risks remain elevated, with $108,000 emerging as the key support level. A failure to hold this zone could pave the way for a deeper correction toward $105,000.
On the flip side, a recovery above $110,000, and especially $112,000, would invalidate the bearish Wave C scenario, signaling that the pullback was corrective rather than the start of a larger decline.
Cover image from ChatGPT, BTCUSD from Tradingview
