📈💥 Why Did Bitcoin Drop After Hitting $108,899?

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1. Whale Profit-Taking & Exchange Inflows

Large holders—often whales who acquired BTC around $60–70K—began cashing in gains. Roughly $2.4 billion in BTC moved to exchanges shortly after the peak, boosting selling pressure .

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2. Derivative Liquidations Flooding the Market

Excessive leverage and elevated funding rates on platforms like Binance, Bybit, and Deribit caused over $1.1 billion in long liquidations. This cascading sell-off amplified the decline .

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3. Liquidity Grab & Algo Resistance Tactics

Big players often drive prices above technical resistance to trigger stop-loss hunts, then reverse sharply—collecting liquidity. Algorithms then trigger sells near major Fibonacci extensions (around $108.9K) and divergences in RSI .

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4. Sell-the-News on Regulatory/Treasury Moves

Rumors of a country adopting BTC and activity from U.S. government‑seized coins (tied to Silk Road) were largely “priced in.” Instead of fueling a rally, they triggered sell-the-news reactions .

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5. Technical Resistance & Overbought Conditions

The $108.9K level coincided with a key Fibonacci resistance and was flagged by RSI as overbought. This, along with algorithmic triggers, made a pullback almost inevitable .

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🔍 What Comes Next?

Support Zones: Watch $95K (psychological), $92.8K (38.2% Fib), and $89K (long-term MA) .

Resistance Areas: $102K (former support as resistance) and $105K+.

Trader Perspectives:

Some analysts view this as a healthy consolidation, possibly leading to another leg up toward $110–120K later in Q3 .

Others caution that weakness could drag BTC back to the $88–90K range before recovery .

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🧭 Bottom Line

$BTC