Why did Bitcoin drop to $100,000?

The reasons behind this crash are not without clues. The 30-day implied volatility has fallen to a nearly 11-month low, institutional participation has sharply declined, and both CME futures and options open interest have also noticeably decreased—marking a wait-and-see period for the market.

Meanwhile, BlackRock has reduced its BTC holdings to switch to ETH, resulting in a continuous net capital inflow into the ETH ETF for 11 days, while funds have been partially drawn away from BTC.

Additionally, Circle's IPO is in high demand, which could lead to a shift of funds from the crypto market to traditional capital markets.

Technical Analysis: Key levels to be cautious of

$105,000–$105,500: The main resistance zone currently facing BTC, belonging to the recent high point area. If it cannot break through, there is limited upward momentum in the short term.

$104,000: The latest high point from May tested on the daily chart; if it fails to hold, it may trigger market panic.

$102,420: The lower Bollinger Band support point; if broken, it may further probe down to around $100,000.

If the support at $102,420 fails, the next support level looks towards the $95,000 area, and it may even dip to the $92,000 CME gap.

The fluctuations on June 6 caused over $1 billion in positions to be liquidated, but BTC is still oscillating violently within the $100,000–$105,500 range.

If buying pressure can remain strong and hold the $102,420—$104,000 support, then a short-term rebound may continue. Otherwise, if it breaks down, the next move could be towards $95K or the CME gap.

These levels determine the short-term operational rhythm, and the ability to achieve arbitrage profits lies in the defense of these points.

Feel free to follow me; in the next article, I will continue to analyze the next trends of ETH and BTC from the perspectives of arbitrage and capital flow.