Bitcoin Flash Crash Deepens as Whales and Market Makers Dump Into Leveraged Longs

Source: CryptoNewsNet Original Title: Bitcoin flash crash deepens as whales, market makers dump into leveraged longs Original Link: Bitcoin (BTC) and major cryptocurrencies experienced sharp declines over the weekend as geopolitical tensions triggered widespread selling and significant liquidations across digital asset markets.

Market Decline Overview

The leading cryptocurrency lost substantial value during the sell-off, with the total cryptocurrency market capitalization declining by approximately $100 billion in a matter of hours. Bitcoin shed tens of billions in value as crypto market cap dropped within hours amid US-EU tariff threats.

On-Chain Activity

Blockchain analytics platforms reported that major holders sold large quantities of Bitcoin during the decline, with institutional participants and exchanges among those divesting positions. The activity was characterized as coordinated selling involving large holders, exchanges and market makers.

On-chain data showed large coordinated BTC selling by whales, exchanges and market makers, triggering cascading long liquidations. Multiple tracking services reported that major cryptocurrencies declined while trading volume increased substantially during the market movement.

Market Context

Market analysts attributed the decline to escalating trade tensions and broader risk-off sentiment rather than cryptocurrency-specific weakness, noting the interaction between geopolitical developments and highly leveraged trading positions. The liquidation activity suggested overleveraged traders contributed to the price movement, with market makers and exchanges appearing to anticipate the decline.

Bitcoin remained modestly higher over a seven-day period despite the recent volatility.

Technical Analysis

Technical analysts identified a potential reversal pattern at the 38.2% Fibonacci retracement level following a recent rejection at that technical threshold. Some analysts drew comparisons to 2022 price action, when Bitcoin briefly tested a similar technical level before a steep decline.

Other analysts noted differences in current macroeconomic conditions, citing indications of monetary policy adjustments and continued high volatility and leverage in cryptocurrency markets.

BTC now hovers near key Fibonacci and trendline support, with analysts split between a deeper 2022-style dump and a relief bounce toward $98k-$100k. Bitcoin now approaches critical support levels as traders monitor for further downside or a potential recovery.