Bitcoin Price Plummets: Is $107,000 the Next Crucial Bitcoin Support?

The cryptocurrency market faces renewed pressure as **Bitcoin price** recently dipped towards multi-week lows. Following a brief rebound that stalled at $116,000, sellers quickly regained control. This downward momentum has traders closely watching critical levels. Many observers are now eyeing $107,000 as a potential near-term target for **BTC price**. The market’s current volatility demands a cautious approach from investors.

Bitcoin’s Retreat and the Infamous Crypto Whale

Data from leading market platforms shows **BTC price** dropping over 3% to retest the $110,000 mark. This fresh wave of volatility has once again tested the resolve of long-term holders, known as “hodlers.” Suspicions of market manipulation continue to circulate among participants. Trader Skew noted that “Puke from the US market open led to another sweep of $110K which is still seeing passive buying & a bit more absorption of market selling.” Furthermore, Skew observed that “In perps we have shorts from earlier in the day taking profits.” These dynamics suggest a complex interplay between selling pressure and underlying demand.

A significant factor influencing current market sentiment is the activity of a particular **crypto whale**. This whale famously shorted the market just before a massive $20 billion liquidation cascade last Friday. On Tuesday, their **Bitcoin short** position, utilizing 10x leverage, reportedly reached nearly half a billion dollars. This substantial bet against the market’s upward movement highlights a strong bearish conviction from a major player. Such large-scale shorting can significantly impact market psychology and price action.

Understanding Key Bitcoin Support Levels

The actions of this infamous Hyperliquid whale continue to draw considerable attention. Previously, this entity reportedly shorted $700 million in BTC and $350 million in ETH, netting substantial profits during a market crash. Their current $494 million **Bitcoin short** position, opened at an entry price of $115,288, already shows an unrealized profit exceeding $11.8 million as the price hovers around $112,600. This sustained bearish pressure from a powerful entity underscores the current market fragility.

BTC/USDT five-minute chart with market data. Source: Skew/X

Broader financial markets also faced headwinds on the day. US stocks opened lower, and gold experienced a drop from its recent all-time high of nearly $4,180 per ounce. This general risk-off environment further contributes to the downward pressure on **Bitcoin price**. Trader Roman advised X followers to avoid excessive exposure, citing weak market structure on the path towards $108,000. He observed a “potential DB reversal with volume dropping on major support,” yet expressed caution about filling a wick from the recent liquidation cascade. Consequently, he recommended a low-risk approach for traders.

Broader Market Analysis and the Yearly Open

Identifying crucial **Bitcoin support** levels is paramount for traders navigating this volatile period. The retest of $110,000 demonstrated some passive buying, but its resilience remains a concern. As the market searches for a firm floor, technical analysts are pointing to several key areas. These levels often represent psychological barriers or areas where significant buying interest has emerged historically. The confluence of various indicators at specific price points can reinforce their importance.

Keith Alan, co-founder of Material Indicators, provided a more bearish outlook. He stated, “$BTC is pushing down for a 4th support test at $109k, but I’m not convinced it will hold.” He believes stronger technical support lies where the 200-Day Simple Moving Average (SMA) converges with the Q4/2025 Timescape Level. This critical intersection is located around $107,100. Should bulls fail to defend this level, the market could shift its focus to even lower price points.

The yearly open for **Bitcoin price** is another significant level for long-term holders and analysts. Located just below $93,500, this point has historically acted as a pivotal floor or ceiling, dictating market sentiment for extended periods. Losing the $107,100 level could bring this yearly open back into sharp focus as a major **Bitcoin support**. Therefore, traders and investors are closely monitoring these specific price points to gauge potential future movements.

BTC/USD one-day chart. Source: Keith Alan/X

Navigating Volatility with Informed Market Analysis

Beyond individual price levels, a comprehensive **market analysis** considers broader trends and indicators. Previously, various key support trendlines were in play, including different moving averages. The aggregate cost basis for short-term holders also offers insights into potential selling pressure or accumulation zones. When the price falls below the cost basis for a large cohort of holders, it can trigger further selling as they look to cut losses. Conversely, holding above this level can indicate conviction.

The current market environment demands careful **market analysis** and strategic decision-making. The combination of whale activity, broader economic headwinds, and critical technical levels creates a complex picture. Investors should consider multiple factors when assessing risk. For instance, understanding the volume associated with price movements can provide clues about the conviction behind buys or sells. High volume on a downward move suggests strong selling pressure, while low volume might indicate a temporary pullback.

Furthermore, monitoring funding rates in perpetual futures markets can offer insights into speculative sentiment. Negative funding rates often signal an increase in short positions, reflecting bearish sentiment. Conversely, positive rates suggest bullish sentiment. The substantial **Bitcoin short** by the Hyperliquid whale aligns with a period of increased bearishness in the derivatives market. This kind of advanced **market analysis** helps traders anticipate potential shifts.

What Lies Ahead for BTC Price?

The immediate future for **BTC price** hinges on the resilience of key support zones. While $110,000 saw some absorption, the $107,000 level, bolstered by the 200-Day SMA and Timescape Level, appears to be the next critical test. Failure to hold this could precipitate a deeper correction, potentially bringing the yearly open at $93,500 into play. Conversely, a strong rebound from these levels could signal a renewed bullish momentum.

As always, the cryptocurrency market remains highly dynamic and subject to rapid changes. This article does not offer investment advice or recommendations. Every investment and trading decision carries inherent risks. Readers must conduct their own thorough research before making any financial commitments. Staying informed through detailed **market analysis** and understanding the implications of major players’ actions, like the persistent **crypto whale** shorting, is crucial for navigating these challenging times.