- Bitcoin’s price surged to nearly $114,000 before sharply dropping to under $108,000.
- The decline wiped out almost $300 million in BTC positions.
- BTC traded above $108,200 as bulls tried to regain upside momentum.
The latest Bitcoin rally stumbled early Wednesday as major altcoins also retreated.
The drop to a low of $107,534 erased gains made after prices climbed close to $114,000.
Notably, the fall triggered a cascade of leveraged liquidations across Bitcoin and the broader crypto market.
Bitcoin pullback below $108K results in nearly $300M in liquidations
After reaching an intraday high near $114,000 on October 21, Bitcoin reversed sharply as selling pressure overcame bullish momentum.
The flagship cryptocurrency fell below $108,000, hitting a low of $107,534 on major exchanges.
The move produced nearly $300 million in 24-hour BTC liquidations, while liquidations across the wider crypto market exceeded $650 million in leveraged positions.
As with Bitcoin, broader-market liquidations affected both long and short positions.
Coinglass data showed that over the past 12 hours more than $280 million was liquidated, with $128 million in long liquidations and $152 million in short liquidations during that period.
Bulls who expected a sustained breakout were caught off guard. Bears betting on a rapid collapse also suffered as the price quickly stabilized above $107,500.
The benchmark cryptocurrency appears to have found support and is currently looking for more room to move higher above the $108,000 level.
Profitability is a key issue for bulls, with data indicating that new BTC whales are currently underwater.
Market data and analytics platform CryptoQuant notes that Bitcoin trading below its average cost basis—around $113,000—reflects visible weakness.
Whales now face unrealized losses totaling approximately $6.95 billion, the largest reading 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
Bitcoin price outlook
At the time of publication, Bitcoin was trading around $108,262, roughly 1% higher over the past 24 hours.
However, BTC is down almost 5% for the week, and the partial recovery seen after Tuesday’s sell-off shows persistent indecision.
Traders are awaiting fresh catalysts, including quarterly earnings from major tech firms and the Federal Reserve’s upcoming policy meeting. In the near term, price action is likely to range between $107,000 and $115,000.
Positive macroeconomic developments could sway risk appetite across correlated markets and risk assets.
Analysts view the recent Bitcoin price action as one to watch closely, especially for signs of smart money positioning.
Market commentator Captain Faibik shared the following on X:
$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 the path of least resistance appears range-bound, a sustained push above $115,000 would be a strong bullish development.
Conversely, key support levels to defend lie between $105,000 and $108,000.