- Bitcoin’s price climbed to nearly $114,000 before plunging sharply below $108,000.
- The crash wiped out almost $300 million in BTC positions.
- The BTC price traded above $108,200 as bulls tried to push it higher.
Bitcoin’s recent rally stalled early Wednesday, with the top altcoins also dropping in tandem.
The slide to a low of $107,534 erased gains accumulated when prices briefly approached $114,000.
The downturn triggered a cascade of liquidations across leveraged Bitcoin positions and the broader cryptocurrency market.
Pullback below $108,000 Triggers Nearly $300 Million in Liquidations
After reaching an intraday high near $114,000 on October 21, Bitcoin reversed sharply as selling pressure overwhelmed bullish momentum.
The flagship cryptocurrency fell below $108,000, hitting a low of $107,534 on major exchanges.
The drop pushed 24-hour BTC liquidations to nearly $300 million, while leveraged positions across the wider crypto market saw more than $650 million liquidated.
Liquidations affected both long and short positions across the market, mirroring Bitcoin’s moves.
According to data from Coinglass, bets closed over the previous 12 hours exceeded $280 million, with about $128 million in long liquidations and $152 million in short liquidations during that window.
Bulls expecting a sustained breakout were caught off guard. Bears betting on an immediate collapse also suffered as the price quickly stabilized above $107,500.
The benchmark cryptocurrency appears to have found support and currently has room to target further upside above the $108,000 level.
Gains are crucial for bullish sentiment, particularly as on-chain data indicates that newly accumulated BTC by certain whale cohorts is underwater.
CryptoQuant, a crypto market data and analysis platform, notes Bitcoin is trading below its average cost basis of roughly $113,000 — a sign of notable weakness.
Wales currently face unrealized losses of $6.95 billion, the highest level for this metric since October 2023.
New Whales are underwater.
Bitcoin is trading below its average cost basis of ~$113K, leaving it with $6.95B in unrealized losses, the largest since Oct 2023.
This cohort holds ~45% of the total Whale Realized Cap. pic.twitter.com/EyVqWjhzdm
— CryptoQuant.com (@cryptoquant_com) October 21, 2025
Outlook for Bitcoin’s Price
At the time of writing, Bitcoin was trading near $108,262, roughly 1% higher over the previous 24 hours.
However, BTC is down nearly 5% for the week, and the rollback of gains after Tuesday’s drop indicates persistent indecision among traders.
Market participants are now awaiting new catalysts, including quarterly earnings from major tech companies and the next U.S. Federal Reserve policy meeting, with Bitcoin moving within a $107,000 to $115,000 range.
Positive macro developments could lift risk appetite across risk assets and correlated markets, potentially supporting a renewed advance.
Analysts suggest the current BTC price action is worth watching closely, particularly as smart-money positions may be shaping the next move.
Trader Captain Faibik shared a note on X highlighting possible market manipulation and liquidity dynamics.
$BTC price action clearly shows signs of market manipulation..🧐
Smart Money is trapping both sides.. liquidating late longs and shorts before the Real move starts.
Remember: Manipulation creates liquidity, and liquidity fuels Smart Money..#Crypto #Bitcoin #BTC pic.twitter.com/muxnstjFAg
— Captain Faibik 🐺 (@CryptoFaibik) October 22, 2025
While price action currently favors a narrow trading range, a decisive move above $115,000 amid bullish momentum would be a strong positive signal.
On the downside, critical levels to defend remain in the $105,000 to $108,000 area.