Crypto Bull Run Dead? The Real Reasons Behind Bitcoin and Altcoins Plunge

Markets bleed as traders panic—but is this just another shakeout before the next leg up?

Liquidity crunch or healthy correction? Bitcoin's 20% drop from July highs sparks debate: institutional profit-taking or algo-driven flash crash? Memecoins got hit hardest—no surprise there.

Whales are accumulating while retail flees. Chain data shows addresses holding 100+ BTC added 12,000 coins last week. Smart money buying the dip... or preparing to dump harder?

Traders chasing 'altseason 2.0' got rekt. Ethereum, Solana, and BNB all underperformed BTC—classic capitulation signals. Though let's be real, most 'fundamental analysis' in this space is just horoscopes for finance bros.

This isn't 2021. With spot ETFs live and real institutional exposure, crashes hit different now. Strap in—volatility's the only certainty.

Is the crypto bull run over?

The crypto pullback is also happening due to technical factors. The chart above shows that Bitcoin price formed a shooting star pattern on Monday. This pattern, characterized by a small body and a long upper shadow, is one of the most common bearish reversal signals.

Bitcoin is also falling due to mean reversion, where an asset returns to its historical averages. In this case, BTC surged above $123,000 on Monday, significantly higher than the 100-day moving average of $103,000 and the 50-day average of $108,200. As such, mean reversion suggests that BTC may keep falling to bridge this gap.

Bitcoin also appears to be executing a break-and-retest pattern by moving back to the key support at $110,000. This B&R pattern is a common continuation signal in technical analysis.

Therefore, this is unlikely to mark the end of the crypto bull run. The more probable scenario is that BTC drops to $110,000 and then resumes its uptrend, potentially triggering another rally among altcoins.