Bitcoin $BTC surprised traders worldwide when it surged to a fresh local high of $108,899, only to face sudden selling pressure that dragged its price sharply downward. But what caused this unexpected pullback in the world’s largest cryptocurrency?

1.Profit-Taking by Whales

One of the immediate reasons for the drop is heavy profit-booking by large holders (“whales”). After $BTC hit this critical psychological level, big players likely sold part of their holdings to secure gains, triggering a cascade of sell orders across major exchanges.

2.Stronger US Dollar & Economic Data

A stronger-than-expected U.S. economic report and Fed comments hinted that interest rates may stay higher for longer. This boosted the dollar index (DXY), reducing risk appetite in crypto markets as investors moved into safer assets like cash and bonds.

3.Uncertainty Around the FOMC Meeting

Traders are also cautious ahead of the upcoming FOMC meeting. Speculation about potential shifts in monetary policy has made investors risk-averse, leading to a wave of liquidations in both futures and spot markets.

4.Technical Resistance Zone

The $108,000–$110,000 range marked a strong technical resistance zone, identified by analysts and algorithms. When Bitcoin $BTC touched this area, automatic sell signals likely triggered across trading platforms, causing the price to retreat.

5.Geopolitical Tensions

News surrounding Middle East tensions and uncertainty in global markets added to the nervousness. Historically, such geopolitical risks push traders into cautious mode, impacting speculative assets like Bitcoin.

📊What’s Next for Bitcoin?

  • Support Level to Watch: $103,000 – $104,000

  • Resistance Level: $110,000

  • Possible scenarios include consolidation around $105,000 or a fresh breakout if macro or ETF-related positive news emerges.

🔍Conclusion

While the dip after $108,899 raised eyebrows, it seems driven by natural market behavior: profit-taking, technical resistance, and macro uncertainty. The broader uptrend may still be intact — but traders should stay cautious ahead of key economic events like the FOMC decision.

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