❌ Whale 'Machi Big Brother' liquidates all longs — $33.8 million
The main player closed all longs, securing $33.8 million in profit. This mass exit hit the trend — BTC is struggling to break the $120,000 level, while assets that previously rose sharply are now experiencing declines. Low volumes during breakout attempts caused a massive sell-off.
Meaning: high sales by major players — a classic signal for a potential local reversal.
❌ Liquidations of traders — over $1 billion in losses
BTC sharply fell from over $121,000 to < $118,000. Over 200,000 traders lost positions; liquidation volume approaches $1 billion.
The decline triggered a chain reaction: assets are overvalued, and the pressure of 'stops' activated a chain of sales.
❌ Overvalued growth? — Bitcoin signals a potential drop to $110,000
Technical indicators (fair value gaps, loss of momentum) indicate the beginning of a correction. The potential movement is up to $110,000 before the trend resumes.
That is — an overheated asset should transition to a probing or correcting mode.
❌ Outflow of institutions/traders from the U.S. — decline in support
Institutional selling is explained by the negative Coinbase Premium Gap, an indicator showing outflow of U.S. capital. After strong annual growth (+102%), many traders are taking profits: a large number of long liquidations is one reason for the reversal.
This is a technical, but logical 'pullback' after a rapid rally.
❌ Economists' forecasts — possible 'terrible' crypto-crack
Macroeconomic analysts note the risk of a crisis in the crypto market due to overvaluation. While profits are possible, this could resemble 'a big deflation of the price bubble.'
This creates a psychological foundation for investors: expectations of a correction are rising, especially after ATH.
❌ PPI (Producer Price Index) in the U.S. +3.3% YoY — steel and inflation pressure
PPI for July rose by 3.3%, exceeding expectations (2.5%). This signals a strong inflation wave. It puts pressure on the Fed rate, increasing borrowing costs. Historically, this is negative for risk assets, particularly crypto.
As a result, appetite weakens, assets 'deflate.'
What happened?
A surge in local sales (whale + liquidations) triggered a crash, forcing the system to correct.
Technical signals — RSI, gap, MACD, Fibonacci — confirm fatigue and the need for re-support.
Inflation dynamics and fears of overheating (according to macro experts) form a foundation for a short-term sell-off.
