Bitcoin $BTC just experienced a sharp correction, falling under $113,000, shaking up crypto markets. Here's what triggered the drop and what comes next 👇
🔍 What Caused the Crash?
🐋 Whale Profit-Taking:
An inactive wallet moved $4.8B worth of BTC, triggering panic across exchanges.
→ Result: Over $450M in long positions liquidated and $3.5B in market-wide losses.
📉 Rejection at Key Resistance ($120K–$123K):
BTC failed to break above the strong resistance zone, forming bearish candlestick patterns — a sign sellers are in control.
🌐 Global Macro Tensions:
Fresh concerns about U.S. tariffs spooked investors across traditional and crypto markets. Many rushed to lock in profits.
📊 Weak Technical Momentum:
Bearish divergence appeared — while price made higher highs, RSI lagged behind.
The NUPL (Net Unrealized Profit/Loss) also flashed signals typically seen before local tops.
📌 Crucial Level: $113.6K
This is a key short-term support. If lost, price could cascade lower. If reclaimed, we may see recovery.
🔧 What Traders Can Do:
Short-Term View:
Watch the $115K–$116K zone for potential bounce setups or continuation signals.
Long-Term Investors:
Dips near $104K–$110K could be accumulation zones only if macro and network strength remains solid.
Macro Observers:
Track U.S. Fed policy, global trade developments, and inflation news — they are directly affecting crypto price action now.
✅ Summary
This flash crash is a reminder of how quickly sentiment can shift in crypto. Between whale moves, macro fear, and weakening indicators, BTC's next steps could be critical.
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