Bitcoin just suffered a sharp correction, plunging below $113,000, shaking the broader crypto market. Here’s a breakdown of the key drivers behind the drop — and what could come next 👇
🔻 What Caused the Bitcoin Crash?
🐋 Whale Activity Sparks Panic
A massive dormant BTC wallet moved $4.8 billion worth of Bitcoin.This triggered widespread fear, leading to:💣 $450 million in long liquidations📉 $3.5 billion in total market losses
🚫 Resistance Rejected Near $123K
BTC tested the $120K–$123K resistance range multiple times — but failed to break out.A bearish candlestick pattern formed, indicating selling pressure was building.
🌍 Macroeconomic Pressures Rise
Fresh U.S. tariff announcements rattled global markets.Investors rushed to take profits, pushing prices lower amid risk-off sentiment.
⚠️ Technical Red Flags
Bearish divergence appeared on the RSI — price made higher highs, momentum did not.The NUPL (Net Unrealized Profit/Loss) indicator is flashing historically overbought levels.
🔑 Key Support Level to Watch: $113.6K
Technical analysts are eyeing this zone closely. A breakdown below could open the door to deeper correction. A strong bounce here might signal short-term recovery.
📌 Why This Crash Matters
This drop shows how quickly BTC can reverse when major players (whales), global news, and technical weakness all align. It’s a real-time reminder of how fast sentiment can shift in crypto.
📊 What Should Traders Do?
🔹 Short-Term Traders
Watch the $115K–$116K range. A reclaim could lead to a relief bounce — but wait for confirmation.
🔹 Long-Term Investors
Look for entries between $104K–$110K, if the macro and on-chain data stay strong.
🔹 Macro Watchers
Stay updated on:
Fed rate decisionsTrade war headlinesGlobal economic data
These are driving sentiment across all risk assets, not just crypto.
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