After weeks of upward momentum, the bitcoin price saw a violent intraday drop, plunging over 2.5% and triggering massive liquidations across the crypto market. The move wiped out over $500 million in long positions, reigniting fears of a deeper correction as BTC struggles to hold support above $114K.
Although corrections are expected during bull markets, the scale and speed of this move have caught many traders off guard. What caused the flash crash, and is this just a shakeout — or a signal of something bigger?
Chart Breakdown: Bitcoin Price Technical Rejection at $118K
Bitcoin price briefly touched the $118,500 level before reversing sharply, forming a strong bearish candle on the daily chart. The latest rejection confirms the $118K–$120K zone as a significant resistance band, where sell pressure consistently outweighs bullish momentum.
Source: Tradingview
Market analyst @cantonmeow noted the price fell out of the upper Bollinger Band on the 8-hour chart — a pattern that previously resulted in fake-outs, but this time comes with a noticeable spike in volume and open interest shakeout.
With BTC still trading well above the 100-day moving average, bulls may view this as a healthy retest — especially if $114K holds. However, further closes below $113K could open the door to the $108K–$110K range.
Liquidation Carnage: $526M in 24 Hours
According to data from Coinglass, over 142,000 traders were liquidated in the last 24 hours, with Bitcoin alone accounting for $16M in losses. ETH followed with over $6.6M in liquidations.
Source: Coinglass
The vast majority of liquidations were long positions, totaling nearly $381M — indicating that traders were heavily leaning bullish before the sudden drop. The largest single liquidation order was $17.35M on OKX.
This type of forced selling often adds fuel to the move, turning a correction into a cascade.
Sentiment Snapshot: Is Greed Cooling Off?
The CMC Fear & Greed Index remains in the “Greed” zone with a score of 66, down slightly from last week’s 71. This suggests investor optimism is still high, but waning.
Source: CoinmarketCap
Historically, pullbacks during “Greed” conditions can reset sentiment and prepare for stronger rallies — but if sentiment sours further, downside pressure could accelerate.
Final Thoughts: What This Means for the Bitcoin Price
The recent flash crash is a wake-up call for over-leveraged bulls, but not yet a trend reversal. The bitcoin price remains within a broader uptrend, and such dips often offer entry points for long-term investors.
However, if macro pressure or ETF outflows resume, the market may need more time to stabilize. For now, $114K is the level to watch — a break below could signal short-term weakness, while a bounce may reaffirm bull control.
