Bitcoin just dropped hard, falling below $113,000, and crypto markets are on edge. Letโs break down what caused the dip and what might happen next ๐
๐ Why Did BTC Crash?
Whales Took Profits ๐ฐ
A massive old wallet moved $4.8B in BTC, sparking panic.
This caused a chain reaction of $450M in long liquidations and $3.5B in losses across the market.
Resistance Rejected at $120Kโ$123K ๐ซ
BTC hit a high near $123K but got rejected multiple times.
A bearish candlestick pattern formed โ a signal that sellers were taking control.
Macro Tensions ๐
New U.S. tariff worries hit global markets.
Crypto investors got nervous and locked in profits, adding to the sell-off.
Weak Technical Signals โ ๏ธ
Even as prices made higher highs, momentum (RSI) didnโt โ thatโs a bearish divergence.
Also, the NUPL indicator is flashing levels that often come before local tops.
๐ง Key Level to Watch: $113.6K
Analysts are pointing to this as a critical support zone based on technical patterns.
โ Why This Matters
This crash shows how fast crypto can move when whales, macro events, and technical weakness all hit at once.
๐ What Traders Should Do
โข Short-term traders: Watch $115Kโ$116K. If BTC reclaims this level, we may see a bounce.
โข Long-term investors: Dips toward $104Kโ$110K might be buying zones โ but only if strong fundamentals remain.
โข Macro watchers: Keep an eye on Fed moves, tariffs, and global trade headlines โ theyโre moving markets.
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