1. Massive liquidation of leveraged contracts 🔥💣
A slight drop in price leads to the liquidation of many highly leveraged positions, causing a rush of selling and the price to crash within seconds.
2. Massive sell order or human error 🐳🖱️
A person or large entity (whale) placed a sell order at a very low price by mistake or intentionally... and the liquidity was weak!
3. Technical glitch on the trading platform 🛠️💻
Sometimes the cause is a technical issue on the platform like Binance or others, especially on less liquid pairs like WBTC/USDT.
4. Quick rebound after the crash ⚡🔁
After the drop, buy orders are triggered at low levels, causing the price to quickly rebound back to its normal position.
$BTC #TrumpTariffs #BTC #BinancelaunchpoolHuma #BTCBreaksATH110K #DinnerWithTrump