The crypto market has once again reminded investors of its infamous volatility. Over the past 24 hours, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) have taken a notable hit — leaving many wondering: what triggered this sudden crash, and what’s next?
Bitcoin Spikes — Then Slides
It all started with a sharp upward move on Sunday, when Bitcoin surged to an intraday high of $107,114 on Binance. But what initially looked like the beginning of another bullish leg quickly turned sour. The rally was met with heavy selling pressure at those levels, pushing BTC back down by over 4.2%, landing near the $102,579 mark.
Data from CoinGlass revealed that the market turbulence resulted in $651 million in liquidations across both long and short positions. Bitcoin’s price whipsawed between $107K and $102K, catching many traders off-guard in the process.
Why the Sudden Drop?
From a technical standpoint, Bitcoin had just taken out last week’s high around $105,663, but this breakout proved to be a classic bull trap. The surge triggered a cascade of sell orders sitting above that resistance, causing a swift rejection. Analysts point to the $100K–$99K zone as a critical support range to watch in the short term — a zone that could be revisited if the downward momentum continues.
The Ripple Effect: ETH, XRP, DOGE Follow Suit
Bitcoin rarely moves in isolation, and its sharp pullback sent shockwaves throughout the altcoin market. Ethereum, the second-largest cryptocurrency by market cap, plunged by nearly 9% in just 13 hours. XRP and DOGE weren’t spared either, sliding 5.3% and 9.1% respectively in the same time frame.
This strong correlation between BTC and other major altcoins means that when Bitcoin falters, the broader market tends to follow — often with even greater intensity.
A Word of Caution
Although the medium- to long-term outlook for Bitcoin remains positive, investors are being urged to exercise caution in the short run. Trying to “catch the falling knife” in these situations can be risky, especially given that Bitcoin’s volatility is now at a 10-month low — a sign that large price swings may continue.
Adding to the bearish sentiment, Bitcoin’s recent daily candle has formed a bearish engulfing pattern, erasing the previous day’s gains and signaling potential for further downside.
What’s Next? Levels to Watch
If selling pressure continues, Bitcoin could test $101K, a crucial support level that previously acted as a resistance. Should this area break, technical indicators suggest a further dip toward the $100.3K–$99.8K range, which was previously outlined in the TPO (Time Price Opportunity) chart due to low volume.
However, this pullback could ultimately be healthy for the market. Many analysts still believe this current correction might set the stage for a renewed rally, with potential upside targets at $118K and $135K. In essence, we might just be witnessing a classic shakeout — a breather before another major move upward.
Final Thoughts
Market jitters are not new in crypto, and today’s volatility is a reminder that sharp corrections are par for the course — even in bull markets. With institutional money entering the space and long-term fundamentals intact, many remain confident in Bitcoin’s trajectory. For now, though, all eyes are on whether BTC can stabilize above $100K, or if a deeper correction is on the horizon.
