Why Did Bitcoin Drop After Hitting $108,899?
Bitcoin dropped after hitting $108,899 due to a combination of technical and market-driven factors:
The price reached a major Fibonacci extension target, which is a common level where traders expect resistance and potential reversals.
This triggered high-frequency algorithmic sell orders, rapidly increasing selling pressure.
At the same time, there was a bearish divergence in the Relative Strength Index (RSI), indicating that the rally was losing momentum and a correction was likely.
Additionally, some analysts described the move as a "liquidity hunt," where the price was pushed up to trigger buy-stops and attract late buyers before reversing sharply2.
These factors together made a correction almost inevitable after the all-time high.
