Why Crypto Just Crashed: Bitcoin Shatters Critical Resistance Level - What Happens Next?
Bitcoin's foundation just cracked. The digital asset's breakdown below key support sends shockwaves through crypto markets.
Technical Breakdown
BTC sliced through its crucial resistance level like a hot knife through butter. This isn't just a dip—it's a structural failure that's dragging altcoins down with it.
Market Domino Effect
When Bitcoin sneezes, the entire crypto space catches pneumonia. Today's move demonstrates how interconnected these digital assets remain despite claims of decentralization.
Trader Psychology Shift
Fear replaces greed as leveraged positions get liquidated across exchanges. The 'buy the dip' crowd suddenly remembers that charts can move in both directions.
Institutional Impact
Wall Street's crypto darling now faces its first real stress test since mainstream adoption. Turns out digital gold still follows the same old rules of supply and demand—who knew?
This volatility serves as a stark reminder that in crypto, resistance levels aren't just lines on a chart—they're the difference between profit and margin calls. The market's moving fast enough to give traditional finance types another excuse to avoid adopting blockchain technology.
Bitcoin Crash or Generational Entry?
Bitcoin was rejected from the $114K level, baiting many longs into the trap. Longs were liquidated by more than 10 folds the shorts. The BTC price was dumped straight below the POC level of the Volume Profile indicator, sending the whole altcoin market even deeper.
Right now, the RSI indicator is flashing bullish divergence, with BTC price stopping at the bottom line of the VP indicator and finding support in the $108K-$110K price level. Many traders see this as an entry point for the upcoming month, especially with the upcoming rate cut that could potentially send Bitcoin higher.
On a daily timeframe, we can see a place of interest that aligns with the $108K-$110K zone. However, if that doesn’t hold, we could expect bitcoin to crash once again, this time taking us even deeper.
That WOULD send BTC to retest the 200 SMA (Smoothed Moving Average) and possibly test the overall bull market trend. Right now, if buyers step in, we can see a strong V-shaped reversal, meaning we are ready for another leg up.
