đ Why did the market drop today?
Here are the main reasons for this sudden decline observed in the market:
đș 1. Rise in geopolitical tensions: increased risk aversion
The airstrikes carried out by Israel against Iranian military positions triggered a wave of panic among investors. As a result, the market dropped by more than 4%, falling from about $108,000 to $103,500, with capital fleeing to safer assets like #gold đȘ.
đŁ In less than an hour, over $335 million in positions were liquidated on the crypto markets.
đ 2. Chain liquidations on futures contracts
The sudden volatility caused a cascade of forced liquidations on leveraged long positions, intensifying selling pressure in the market. Derivatives platforms like futures were heavily impacted.
đ 3. Technical reversal after a resistance level
The recent rally towards $111,000 was abruptly halted at the upper Bollinger band, signaling an overbought situation.
Indicators like the RSI also showed a loss of momentum. The price then retreated towards the median band (around $106,000â$108,000), initiating a consolidation phase đ.
đ° 4. Profit-taking after the surge related to ETF inflows
The inflows into Bitcoin ETFs, particularly the $164 million recorded on June 11, contributed to driving prices up. Such a surge often attracts short-term profit-taking, which can generate a natural correction.
đ Summary of the situation
The current drop is the result of a combination of factors:
Trigger Effect
Middle East issue đ Fear â Flight to safe assets
Massive liquidations đ„ Amplification of sales
Technical resistance đ Natural correction
Post-ETF profit-taking đŒ Locking in gains
