Here’s the current Bitcoin price:
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🚨 What just happened: BTC Flash Crash Explained
1. Sudden drop from ~$123K to just above $112K
Earlier (on August 1, 2025), Bitcoin plunged from a recent high near $123,218 down to about $112,722, nearly a $10,500 slide within days, wiping about 2½% off its value in less than 24 hours .
2. Drivers: Liquidations & bearish technical setup
A bearish candlestick pattern emerged near $123K, signaling sellers stepping in .
Analysts attribute the sharp move to mass liquidations of leveraged long positions across major exchanges, forcing rapid sell-offs .
3. Broader context: recent institutional activity
Just days earlier, a massive $9 billion sale of 80,000 BTC by an early investor via Galaxy Digital was smoothly absorbed, causing only minor 1% dip before recovery above $119K—underscoring increasing market maturity and liquidity .
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🔭 What this means now
Short-term view
Bitcoin is now hovering just above $113K, around the support zone of $112K–$115K. Many analysts expect this to act as a pivot. Holding above $112K may preserve bullish sentiment; a break below could push BTC toward $110K or lower .
Medium-term view
Derivatives data suggests this dip is not signaling an end to the 2025 bull run. Open interest and leverage remain elevated, and analysts say there's no sign of broad capitulation yet. Instead, it looks like a healthy de‑leveraging inside a larger uptrend .
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🧭 Key takeaways
Topic Insight
Cause Mostly forced liquidations and technical rejection (not fundamental shock)
Market maturity Absorbed billion‑dollar trades with minimal volatility recently
Price support zone $112K–$115K crucial – holding it may signal recovery potential
Bull run status Analysts still see the broader uptrend intact despite the sudden drop
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✅ What to watch next
1. $112K support: A closure below could trigger deeper pullback (~$110K or ~$108K).
2. Reclaiming $115–117K: A break back above may signal renewed strength.
