Bitcoin just suffered a sharp correction, plunging below $113,000, shaking the broader crypto market. Here’s a breakdown of the key drivers behind the drop — and what could come next 👇

🔻 What Caused the Bitcoin Crash?

🐋 Whale Activity Sparks Panic

  • A massive dormant BTC wallet moved $4.8 billion worth of Bitcoin.

  • This triggered widespread fear, leading to:

    • 💣 $450 million in long liquidations

    • 📉 $3.5 billion in total market losses

🚫 Resistance Rejected Near $123K

  • BTC tested the $120K–$123K resistance range multiple times — but failed to break out.

  • A bearish candlestick pattern formed, indicating selling pressure was building.

🌍 Macroeconomic Pressures Rise

  • Fresh U.S. tariff announcements rattled global markets.

  • Investors rushed to take profits, pushing prices lower amid risk-off sentiment.

⚠️ Technical Red Flags

  • Bearish divergence appeared on the RSI — price made higher highs, momentum did not.

  • The NUPL (Net Unrealized Profit/Loss) indicator is flashing historically overbought levels.

🔑 Key Support Level to Watch: $113.6K

Technical analysts are eyeing this zone closely. A breakdown below could open the door to deeper correction. A strong bounce here might signal short-term recovery.

📌 Why This Crash Matters

This drop shows how quickly BTC can reverse when major players (whales), global news, and technical weakness all align. It’s a real-time reminder of how fast sentiment can shift in crypto.

📊 What Should Traders Do?

🔹 Short-Term Traders
Watch the $115K–$116K range. A reclaim could lead to a relief bounce — but wait for confirmation.

🔹 Long-Term Investors
Look for entries between $104K–$110K, if the macro and on-chain data stay strong.

🔹 Macro Watchers
Stay updated on:

  • Fed rate decisions

  • Trade war headlines

  • Global economic data
    These are driving sentiment across all risk assets, not just crypto.

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