Why Did BTC Drop to $116K?

1. Massive Long Liquidation

Bitcoin briefly broke the record at $124K, but its fall to $116K was marked by a long liquidation worth nearly $1.9 billion. Many over-leveraged traders panicked as the market retested the sub-$118K level, triggering a domino effect of forced selling.

2. Active Whale Wallet Dump

Several large whales moved—transferring 30,000 BTC (~$3.5 billion) to exchanges in a matter of minutes. This was the largest selling pressure in some time.

3. Macro Sentiment Tends to Be Cautious

Comments from U.S. officials regarding the absence of plans to purchase reserve Bitcoin—which had been considered bullish—suddenly shifted sentiment to a risk-off stance. Additionally, PPI & CPI data showing stubborn inflation has made the market increasingly anxious.

4. Technical & Safety-Taking

August is known as a seasonally weak month for crypto. Coupled with BTC failing to hold above the Fibonacci resistance at the $116K–$117K level, many traders took profits and cut losses.

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Summary in Table:

Cause Impact on BTC

Long Liquidation Sudden selling pressure, causing prices to drop sharply

Whale Move to Exchange Supply decreases in the spot market → My liquidity

External Sentiment Strengthening USD & increased risk awareness

Technical & Seasonal Weak buying momentum → technical pullback

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Advice from Elite Traders:

> "BTC is not a rocket explosion that keeps rising. It’s like a sniper—quiet at first, then suddenly explodes. When a lot of long volume is wiped out and institutions take a breath, sniper buy opportunities open wide. If you’re still panicking right now, you’re just giving space to the smart ones.”

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