Bitcoin (BTC) slid sharply this week, briefly trading near $109,000 as a fresh wave of selling erased weeks of gains and renewed debate over how far the market could fall if key supports give way. The benchmark cryptocurrency dropped to its weakest level in nearly a month on Thursday and into Friday, fueling more than $1 billion in liquidations across derivatives markets and prompting warnings from chartists and traders alike.

One of the loudest voices on social media was analyst Ali Martinez, who posted a TradingView chart and a terse warning: “$107,200 is the crucial support for Bitcoin $BTC. Lose it, and $100,000 or even $93,000 come into play.” The image he shared, which shows recent price action and horizontal support lines, has been widely reshared by traders looking for clear levels to trade around.

The move lower came alongside a bout of ETF outflows and nervous positioning ahead of U.S. inflation data that markets view as a potential determinant of Fed policy. Exchange-traded product flows turned negative, and analysts pointed to the upcoming PCE inflation print as a likely catalyst for further volatility: if inflation prints hotter than expected, the Fed’s easing path could slow, removing a key tailwind for risk assets; if inflation cools, traders may view the dip as a buying opportunity.

On-chain and derivatives data amplified the pain. More than $1.1 billion in leveraged positions were wiped out during the recent sell-off, with Ethereum longs accounting for a large portion of the carnage, a reminder that margin-driven moves can accelerate price swings in both directions. Crypto experts also tallied broad market losses as other major tokens tumbled.

What happens next hinges on a handful of technical and macro checkpoints. If buyers defend the $107k area Martinez flagged, Bitcoin could consolidate and try to reclaim the $112k–$115k zone it recently lost. If sellers push through, the path toward $100,000 appears vulnerable and would open the door to deeper selling that some technicians peg at around $93,000. That scenario would test the conviction of recent buyers and likely compress leverage further, producing larger short-term swings.

Not everyone sees catastrophe. Some market participants framed the drop as a normal correction in an otherwise strong month for Bitcoin, arguing that seasonality and large-scale flows have repeatedly created buying opportunities in this cycle. Still, most agree that the immediate outlook is fragile: traders should watch ETF flows, derivatives funding, and the PCE print for signals, and respect the support and resistance levels that have governed price action over the past month.

For now, Martinez’s chart has become a focal point for traders deciding whether to step in on dips or step back until clearer price confirmation arrives. With Bitcoin hovering just a few thousand dollars above the level he called “crucial,” the next 48–72 hours look poised to answer whether this is a brief pullback or the start of a deeper retracement.

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