Reasons for Bitcoin's Decline Today: Analysis of Price Pressure & Internal Factors

Bittime - Bitcoin prices often move extremely within short periods. On one recent day, Bitcoin recorded a significant drop after previously hitting record highs or positive momentum. 

This sudden decline raises questions among investors: what is the main cause? 

In this article, we will examine the various factors that could be behind today’s Bitcoin decline — from market liquidations to macroeconomic pressure — and how these affect the crypto market overall.

Technical Factors & Leverage Position Liquidations

One common cause of sharp Bitcoin drops is the liquidation of leveraged positions. When the price moves against leveraged positions, margin calls trigger forced closure of long positions, creating a domino selling effect. 

Price declines are not always caused by panicked spot investors selling, but rather by technical effects from high-leverage liquidations.

Additionally, more than US$400 million in positions were liquidated in the last 24 hours across major cryptos, including Bitcoin.

Other tactics like “stop-loss hunting” (seeking support levels to trigger forced selling) can also accelerate price drops, especially when liquidity is thin.

Read Also: Bitcoin Price Today | BTC/IDR Price 

Large Sell-offs & Miners Unloading Reserves

Price drops are often triggered by large sell-offs from big players (whales) or miners offloading their Bitcoin reserves. Miners sold about 5,066 BTC to the market to realize profits.

Moreover, when large investors sell in big quantities, the price can drop quickly because supply suddenly floods the market and there are not enough buyers to absorb it. 

This factor is exacerbated when technical pressure breaks supports, prompting additional selling.

Macroeconomic Pressure & Monetary Policy

Bitcoin does not exist in a vacuum — global economic conditions and monetary policy also shape its market. 

Careful U.S. monetary policy, especially comments from Fed officials, can increase demand for the U.S. dollar and weaken risk assets like crypto.

Crypto ETFs experienced outflows, weakening institutional interest in Bitcoin.

Changes in inflation expectations, interest rates, or stimulus can also push investors to reallocate capital from risky assets to perceived “safe haven” assets.

Read Also: Signs Bitcoin Starts Correcting After Hitting an All-Time High

Market Sentiment & Failed Breakouts

Often, Bitcoin fails to break through key resistance levels — this makes many investors hesitant to enter — and as a result, upward momentum slows and is worsened by selling pressure. 

Some analysts observe that Bitcoin, Ethereum, and Dogecoin failed to breakout due to a lack of new catalysts and tight Federal Reserve policy.

The crypto market experienced a total market capitalization drop of about USD 22 billion due to bearish sentiment, with Bitcoin below major resistance.

Uncertainty such as negative news, unclear regulations, or security concerns can keep investors from taking buy positions, making selling pressure more dominant.

Read Also: List of 5 Altcoins That Could Rise After BTC All-Time High

Conclusion

Today’s Bitcoin decline is most likely a combination of several factors: leveraged position liquidations, large sell-offs by miners or whales, global macroeconomic pressure, and failed technical breakouts. 

Each of these factors can trigger rapid market reactions and amplify selling pressure.

Investors should exercise caution and pay attention to support levels, liquidity conditions, and macro sentiment to better navigate these fluctuations.

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Check the rates BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to see today’s crypto market trends in real-time on Bittime.

Also visit Bittime Blog for various interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the crypto space.

FAQ

Why did Bitcoin suddenly drop even though positive news appeared?

The drop can be triggered by leveraged position liquidations, large sell-offs by whales/miners, and macro uncertainty despite positive news.

What is liquidation of leveraged positions?

Liquidation of leveraged positions occurs when traders use margin and the price moves against their positions, triggering automatic closure of positions to prevent larger losses.

How big is the impact of miners’ sell-offs on the price?

Quite significant. Miners hold large Bitcoin reserves; when they sell substantial amounts, supply suddenly increases and can push the price down significantly.

How does Fed policy affect Bitcoin?

Interest rate policy and inflation expectations affect the cost of capital and flows into risk assets like crypto — if rates rise or monetary expansion is sidelined, investors may pull capital from crypto.

What technical indicators should be watched when Bitcoin drops?

Watch support-resistance levels, trading volume, RSI, MACD, and whether trendlines are broken. Also monitor market liquidity and large stop-loss levels.