【Bitcoin Suddenly Plummets! Key Information You Need to Know】
Bitcoin has stirred things up again today! It plummeted directly from a high of $120,000 to $116,000, setting a three-week low, and the entire market is in chaos—$631 million was liquidated across the network, and the current price is hovering between $113,000 and $115,000. The key point is that it broke below the important support level of $117,000, triggering a chain reaction, and there is panic throughout the community.
Why did it drop so sharply? There are several main reasons:
The Federal Reserve has announced an interest rate hike, combined with a tense international situation, creating a double blow that has investors feeling anxious;
Large institutions have also started to liquidate positions on a large scale (meaning selling off holdings to reduce risk), resulting in a lack of buyers around $115,000, which has worsened liquidity;
On-chain data shows that the "Greed Index" has declined (indicating a shift from market frenzy to calm, even a bit of panic), while whales (large holders) have begun to transfer large amounts, possibly reallocating or fleeing;
From a technical perspective, the price has broken key levels, and with the adverse macro environment, these two factors combined make the decline feel like a runaway wild horse.
For friends looking to buy at the bottom or cut losses, pay attention to these key points and strategies:
✅ Focus on the $114,000 "Market Liquidation Zone," where there are sell orders for 320,000 BTC. If the price drops to this level, there could be a wave of selling pressure;
✅ Don't dump all your money in at once; it’s recommended to buy 10% of your position for every $500 drop (for example, if it drops to $110,000, buy 10%, and if it drops to $109,500, buy another 10%). This staggered buying can reduce risk;
✅ Keep a close eye on the USDT funding rate (currently 0.03%). If this rate suddenly spikes, it means the cost of borrowing money to trade cryptocurrencies has increased, which may indicate a market reversal;
✅ If Bitcoin's volatility falls to around 55%, or if the long-short ratio drops from 1.8 to below 1.4, options volatility reaches 65%, and miners sell less than 0.35 BTC per day, these signals together may indicate that a temporary bottom is approaching. At that point, consider initiating a hedging plan (such as buying put options to guard against further declines).