Bitcoin Flash Crash! BTC Drops Below $113K - What's Happening?

Bitcoin just experienced a sudden drop below the $113,000 mark, shaking up the crypto market. Let's break down what caused this sharp move and what it could mean for traders.

Why Did Bitcoin Crash?

Whale Activity

A dormant whale moved around $4.8 billion worth of BTC, spooking the market. This triggered a wave of panic selling, leading to over $450 million in long position liquidations and about $3.5 billion in total market losses.

Major Resistance Zone

Bitcoin struggled to break through the $120K-$123K resistance range. After multiple failed attempts, sellers stepped in, pushing the price downward.

Global Uncertainty

Fresh concerns over U.S. trade tariffs added to market jitters. Many investors chose to lock in profits amidst the uncertainty.

Bearish Technical Indicators

RSI showed bearish divergence, hinting at a potential reversal.

NUPL (Net Unrealized Profit/Loss) signaled the market may have been in an overbought state.

Key Support Level to Watch: $113.6K

Analysts are closel ching the $113.6K level. A break below this could signal

Why This Matters

This crash highlights how volatile crypto markets can be especially when large sellers, macroeconomic news, and technical weaknesses hit at the same time.

What Should Traders Do?

Short-Term:

Keep an eye on whether BTC can reclaim the $115K-$116K range trigger a bounce. this could

Long-Term:

If BTC dips toward $104K-$110K, it might present a buying opportunity - but only if fundamentals stay strong.

Macro View:

Stay updated on Federal Reserve decisions and global trade developments - they continue to drive major market moves.

Current BTC Price: $113,397.77 (-0.55%)

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