Recently, the Bitcoin market suffered a heavy blow, with the price plummeting from $120,000 to $116,000, setting a new low in three weeks. This big dump triggered a chain reaction in the market, with a total liquidation amount across the network reaching $631 million. The current price is fluctuating between $113,000 and $115,000.

What worries investors the most is that the key support level of $117,000 has been broken, further exacerbating market panic. The reasons for this drop are complex and varied: the Federal Reserve's interest rate hike expectations, and tensions in the international situation and other macro factors have undermined investor confidence; large institutions have begun to liquidate positions on a large scale, resulting in a lack of liquidity around $115,000; on-chain data shows that market sentiment has shifted from greed to panic, with frequent movements of large funds; the technical breakdown in price has further added to the woes.

For investors who intend to enter the market or set stop losses, the following points are worth paying attention to:

1. $114,000 is a key price level, where there is a huge order volume that could trigger a new round of selling.

2. It is recommended to adopt a staggered buying strategy, such as buying 10% of your position every time Bitcoin falls by $500, to diversify risk.

3. Keep a close eye on the USDT funding rate, as a significant increase may indicate a market reversal.

4. Considering the indicators such as Bitcoin volatility, long-short ratio, options volatility, and miners' coin selling volume may help in determining the short-term bottom.

The market is currently still in a period of turbulence, and investors should remain cautious, control their positions, and wait for the market to stabilize before making decisions. In this uncertain environment, rational analysis and risk management are more important than ever.