Bitcoin's recent volatility has heightened investor anxiety as the cryptocurrency market undergoes significant deleveraging. The total crypto market cap has plummeted by $300 billion in less than a week, with Bitcoin responsible for nearly 53% of this decline. Over $1 billion in liquidations have occurred, predominantly affecting long positions, suggesting a potential bull trap. On-chain data indicates unrealized losses at 1.3% of Bitcoin's market cap, below the 5% threshold that typically signals capitulation. The Fear and Greed index has dropped to 31, reflecting a cautious market sentiment. Additionally, Bitcoin's Open Interest (OI)–Price Divergence metric has reached 10.35%, the highest since mid-August, raising concerns about a possible breakdown toward the $100k–$105k range.