The cryptocurrency market has experienced a significant downturn today, with Bitcoin sliding below the $110,000 mark and dragging the broader market down with it.
This sharp retreat has triggered a cascade of forced liquidations, wiping out over $900 million in leveraged positions in just 24 hours. The vast majority of these liquidations were “long” positions, or bets on rising prices, a clear sign of a quick reversal in market sentiment.
This volatility surge follows a period of relative calm and comes from a mix of factors. A major catalyst was a whale-led flash crash on August 25, where a single large holder offloaded approximately 24,000 BTC, asÂ
reported, causing a rapid price drop that triggered a chain reaction across the market.
This large-scale sell-off amplified existing market fragility, leading to a breakdown of key technical support levels for Bitcoin. And more actions are spotted.
This Bitcoin OG deposited another 968 $BTC($106.44M) to #Hyperliquid 30 mins ago.And he is selling $BTC to buy $ETH spot.https://t.co/pucPOgg0mQ pic.twitter.com/NdJ8r98Zmy
— Lookonchain (@lookonchain) August 26, 2025
A similar action was already reported by Coinidol.com on August 22 when another whale sold BTC and purchased over 62,914 ETH, a spot acquisition worth approximately $270 million.
The domino effect
Additionally, recent speeches from U.S. Federal Reserve officials have created confusion about the timing of potential interest rate cuts. This macroeconomic uncertainty, combined with the technical sell-off, has made traders rush to a “risk-off” posture.
Analysts are flagging that the market may enter an extended downtrend if Bitcoin fails to reclaim key support levels, as a break below $109,000 could jeopardize the current bullish market structure.
However, there are signs of long-term optimism, as some corporate treasuries are using this dip as an opportunity to accumulate more Bitcoin.
Bitcoin price is shaking
A fall occurred on August 21 when a declining candlestick body tested the 61.8% Fibonacci retracement level. The retracement predicts that Bitcoin will fall to a low of $105,388.60. Should the sellers succeed, the BTC price will fall even further to the psychological price barrier of $100,000, as CoinIdol.com wrote in the previous BTC price analysis this week.
Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.
