📉 Why is
$BTC Dumping? The "Black Sunday II" Breakdown
Bitcoin recently tumbled below the psychological $75,000 support level, marking a nearly 10-month low. This isn't just a "crypto thing"—it’s a massive macro shift.
1. The "Warsh Shock" & The Fed
The biggest catalyst was the nomination of Kevin Warsh as the next Federal Reserve Chair. Warsh is a known "monetary hawk" who has vocally criticized the Fed’s $7 trillion "bloated" balance sheet. Markets are now pricing in a future of quantitative tightening (less "money printing"). When the era of easy money looks like it’s ending, high-risk assets like Bitcoin are often the first to be sold for cash.
2. The Great Liquidity Crunch
Over the weekend of February 1–2, the market witnessed what traders are calling "Black Sunday II." Approximately $1.68 billion in long positions were liquidated—the largest wipeout since the FTX era. Because Bitcoin liquidity has been thin (down 30% from October peaks), these liquidations caused a "waterfall effect," where one sell order triggers another, dragging the price down rapidly.
3. Geopolitical Uncertainty & De-risking
Rising tensions in the Middle East have triggered a "flight to safety." Paradoxically, while BTC is called "Digital Gold," it often behaves like a leveraged tech stock during immediate crises. Traders sold BTC to cover margin calls in other markets (like Gold and Silver, which also saw historic drops) and to move into the US Dollar.
🔍 Technical Analysis: The Levels to Watch
Currently, BTC is hovering near $78,500, attempting to stabilize after the dip.
Support Zone: The $73,500 – $75,000 range is the "line in the sand." This area served as major resistance in 2024 and must now hold as support. If we close a daily candle below $71,700, the next stop could be the $60,000 psychological level.
Resistance: On the recovery path, the $80,600 level (November 2025 low) is the first major hurdle. Bulls need to reclaim the 50-day Moving Average to prove this was just a "shakeout" and not the start of a long-term bear trend.
💡 Strategy for Investors
Is the bull market over? Not necessarily. Seasonally, February is historically one of Bitcoin’s best months (up 11 out of the last 15 years). On-chain data shows that "Whales" (wallets with 1,000+ BTC) have actually accumulated 110,000 BTC during this crash. They are buying the fear that retail is selling.
The Bottom Line: This is a macro-driven correction amplified by high leverage. Until we see clarity on the Fed's next move, expect volatility.
Stay calm, manage your risk, and don't trade with more than you can afford to lose.
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