The Real Story Behind Bitcoin’s 10% Crash — Why Liquidations Came Later
Bitcoin's 10% crash was primarily caused by long-term holders selling near key support, which then triggered massive derivatives liquidations.Summary
Bitcoin recently experienced a sharp drop of over 10%, leading to $1.7 billion in liquidations, with nearly $800 million from long positions. Contrary to popular belief that leveraged derivatives caused the crash, on-chain data suggests the breakdown began earlier when Bitcoin fell below the critical support level of $84,600. This level coincided with a dense UTXO Realized Price Distribution (URPD) cluster where long-term holders began selling, resulting in the largest monthly outflow of BTC in the period. This conviction-led selling weakened the support structure, which subsequently made leveraged positions vulnerable, causing the massive liquidations to explode afterward. Technically, the price broke the neckline of a bearish head and shoulders pattern, projecting further downside risk toward $75,000 if the current $81,000 support fails. Recovery requires reclaiming the $84,600 zone, where the initial selling pressure originated.
(Source：BeInCrypto)