A sudden sharp sell-off occurred at 3 AM, plummeting from $112,000 to $108,000 within an hour, hitting a low of $107,800, marking the largest single-day drop this month! This plunge has sent the crypto community into a frenzy, with ‘bearish’ voices filling major Telegram trading groups and Discord channels. Some shared screenshots of their positions: 'I was still up $12,000 at 2 AM, and by 3:30 AM, I was back to break-even. This market is more thrilling than a roller coaster!'

The entire community is now most anxious about the 'support level of $110,000' — many seasoned traders are flooding the chat: '110,000 is the lifeline in the short term; if we can’t close above it today, we will definitely head towards $105,000, or even $100,000!' Someone even posted a screenshot of the exchange order book: the buying volume below $110,000 is down 35% from yesterday, 'there used to be big funds supporting it at $110,000, but clearly, no one is stepping in now,' and the comments are filled with expressions like 'it can't hold' and 'run quickly'.

Extreme volatility has pushed traders to the 'edge of collapse': a group member shared the dynamics of his options account — at 2 AM, his short put option with a strike price of $108,000 had a loss of 92%, on the verge of going to zero; after the crash at 3 AM, the intrinsic value of the option skyrocketed, and his loss narrowed to 10%. He exclaimed in the group, 'This volatility is crazier than using 5x leverage; my heart can’t take it anymore.'

What’s more nerve-wracking is the community's prediction of a 'liquidity waterfall': a technical trader shared a 4-hour K-line analysis chart in the group, marking that 'in the $108,000 - $110,000 range, nearly $520 million of long stop-loss orders are buried,' warning that 'once it drops below $107,000, these stop-loss orders will be triggered, causing a chain liquidation, and it’ll be impossible to stop the decline then'; some even provided a specific timeline: 'From the current market structure, it’s not impossible to drop to $90,000 within 3 weeks, coinciding with the Federal Reserve's interest rate decision; once liquidity tightens, it’ll be harder to bear.'

In the face of this chaos, traders' actions have completely diverged: many choose to 'cut off their arm to survive' — some group members said, 'The delta long position I just built yesterday was completely liquidated after the sudden drop; now I’m sitting out and waiting for direction, I’d rather earn less than be caught in a trap'; others simply decided to 'lie flat and give up': 'My stop-loss was triggered several times, so this time I won’t set one; it’ll either bounce back or I’ll accept the loss, to avoid being harvested repeatedly by the market.' Immediately, someone agreed, 'Setting a stop-loss now is just giving money to the main players; it’s better to just hold firm.'

The community is currently most concerned about whether they can hold on to $108,000 today — if it rebounds back above $110,000 this afternoon, it might ease the bearish sentiment; but if it continues to hover below $108,000, more people may join the short-selling camp.

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