The Bitcoin Billion-Dollar Dump: Here’s Why The BTC Price Keeps Crashing

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Crypto pundit Ardizor has alleged that several crypto firms appear to be dumping Bitcoin, which is why the BTC price keeps crashing. The leading crypto had crashed over the weekend but is now recovering on hopes of a U.S.-Iran deal. Why The BTC Price Keeps Crashing

In an X post, Ardizor stated that the BTC price was dumping because crypto exchangesBinance, Coinbase, and Bybit, along with whales and Wintermute, were selling millions of BTC. He claimed that they have sold over $2 billion worth of BTC and further alleged that it was a “pure, coordinated dump,” which usually comes after the U.S. market opens.  Related Reading The Bitcoin Billion-Dollar Dump: Here’s Why The BTC Price Keeps Crashing 1 hour ago

The pundit cited on-chain flowsfrom these crypto exchanges’ hot wallets as evidence that they were dumping Bitcoin. The latest dump in the BTC price came over the weekend, with the leading crypto falling below $75,000 after the SEC was reported to have delayed its decision on tokenized stocks due to regulatory concerns. Bitcoin also dropped as market participants further priced in the possibility of a Fed rate hike this year. 

However, the BTC price is recovering again following the crash below $75,000, on the back of optimism that the U.S. and Iran may be nearing a deal to end the war. U.S. President Donald Trumphad said over the weekend that the draft deal had been largely negotiated, signaling that they could announce a peace deal soon. 

Furthermore, the BTC price and the broader crypto market are also recovering on the back of the decline in oil prices. Oil prices have dropped after Trump said the Strait of Hormuzwill reopen under this deal, a move that could also ease inflationary pressures.  What’s Next For Bitcoin

Crypto analyst Ted Pillows notedthat the BTC price closed above $75,000, and now the key zone to reclaim is between $77,500 and $78,000, with a rally towards the psychological $80,000 zone. He warned that if Bitcoin fails to hold above $78,000, it will likely sweep the $75,000 zone again.  Source: Chart from Ted Pillows on X

Meanwhile, crypto analyst Max notedthat many low-leverage long liquidations were wiped out on the BTC price decline below $75,000. He stated that this now leaves only one decent cluster below, which will get swept if the price takes out the previous low at $74,200. At the same time, he pointed to another cluster around the $80,000 mark. 

Related Reading: Bitcoin Price Breaks 14-Year Support For The First Time In History, Analyst Predicts $50,000 Target

The analyst acknowledged that a retest of the $80,000 range was still possible from a liquidity perspective, but that the current market structure favors another sweep lower. In line with this, Max said he expects the liquidity below to be taken out this week, unless the BTC price prints a higher high, invalidating the bearish structure. 

At the time of writing, the Bitcoin price is trading at around $77,300, up in the last 24 hours, according to datafrom CoinMarketCap. BTC trading at $77,350 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com