The recent sharp drop in Bitcoin's price, as observed in your charts from around $106,000 to below $101,618.01 as of 22:04 GMT on June 21, 2025, can be attributed to a combination of factors based on recent events and sentiments:
- Geopolitical Tensions: Reports suggest that heightened geopolitical risks, particularly related to conflicts such as Israel striking Iran, have triggered significant selling pressure. This risk-off sentiment has likely driven investors away from volatile assets like $BTC , contributing to the price decline.
- Market Liquidations: The drop has been accompanied by substantial liquidations, with estimates of hundreds of millions of dollars in crypto market liquidations occurring in short periods. This indicates that leveraged positions were unwound, amplifying the downward movement as stop-losses were triggered.
- Macroeconomic Pressures: Concerns about a resurgence in inflation and potential Federal Reserve rate hikes have been cited as risks. These macroeconomic uncertainties could be prompting investors to reduce exposure to risk assets, including Bitcoin, especially after it failed to hold key support levels like $105,000.
- Technical Vulnerability: The price action shows a break below multiple support levels (e.g., $103,000, $102,206.00), coupled with bearish technical indicators like declining moving averages and an oversold RSI(6) at 19.99. This suggests a loss of bullish momentum, possibly exacerbated by a recurring market entity triggering liquidations.
- Sentiment & Selling Pressure: Posts on X and web analyses indicate mixed sentiment, with some long-term holders selling off positions accumulated at higher price ranges ($25,000-$31,000 and $60,000-$73,000). This supply overhang may have limited upside and contributed to the sharp correction.
While some sources anticipated a bullish outlook for June 2025 with potential highs above $137,000, the combination of these bearish triggers has overridden that optimism in the short term. The narrative of a cooling-off period or altcoin season shift might also be influencing capital flow away from Bitcoin, though this remains inconclusive. The market's reaction reflects a complex interplay of fear, technical breakdowns, and external pressures rather than a single definitive cause.