Why did BTC suddenly plummet today? The Bank of Japan and geopolitical risks teamed up for dumping.

Question

[Bitu] Today, during the Asian session, BTC suddenly plummeted, and behind it, there are actually two fuses.

Let's talk about Japan first - the central bank governor Ueda Kazuo spoke quite harshly this time, and the market immediately raised the probability of a rate hike in December from a previously vague expectation to 64%. The yen responded by strengthening, and short-term government bond yields skyrocketed to a new high not seen since 2008. The chain reaction from this is: global funds are starting to recalculate, and both the dollar and high-volatility assets are suffering. Just at this time, diplomatic relations between the United States and Venezuela have soured, and risk aversion sentiment surged.

The reaction here in the crypto circle is very direct—BTC has plummeted quite severely during the Asian trading session today, with the liquidation volume shooting up. By looking at the liquidation map, you can see that there was originally a large pile of long positions at $92,300; once the price broke through, these positions were directly liquidated, and then it fell down like a domino effect. Following that, the levels of $88,300 and $86,200 were also not maintained, and now the price is still looking for deeper support.

Technically speaking, BTC has already broken below the previous sideways range. Looking upwards, the two levels of 90,300 and 92,300 have now become clear resistance zones; looking downwards, 86,200 and 84,300 might hold for a while, but if the sentiment continues to collapse, the large liquidity pool around 82,300 will likely need to be tested as well.

To put it simply, this wave of decline is a typical example of concentrated liquidation at high levels. The sudden shift of the Bank of Japan to a hawkish stance, coupled with geopolitical tensions, has hit risk assets hard in the short term. Next, we need to focus on those liquidity dense areas below and see if capital is willing to pick up at lower levels. In the short term, the market is likely to continue to grind, so don't rush to catch the bottom; wait for signals of structural repair and capital inflow first.

WalletAnxietyPatient · Accepted Answer

The Bank of Japan is really tough; as soon as Ueda opened his mouth, the probability of a 64% interest rate hike was directly revealed, and the long positions in the crypto world had no time to react at all.

TestnetScholar · Answer

It&#39;s the Central Bank&#39;s fault again, I&#39;m really annoyed. Every time Japan speaks, the coin just falls. Are we supposed to pay for their policies?

ser_aped.eth · Answer

The Japanese central bank&#39;s intervention has caused everything to collapse, with interest rate hikes and risk aversion leading to BTC getting dumped like this. The liquidation has skyrocketed, it&#39;s truly incredible.

OnChainSleuth · Answer

The Bank of Japan&#39;s move is really incredible; the chain reaction directly broke through, and once the 92,300 defense line was breached, it all collapsed. We are being used as a backstop.

ZenMiner · Answer

The Bank of Japan immediately mentioned a 64% probability of interest rate hikes, this guy really dares to say it, directly scaring global funds to reallocate, with BTC being forced to take the blame.

fork_in_the_road · Answer

The Bank of Japan really knows how to stir things up. Just one sentence has thrown global funds into chaos, and we in the crypto world have to passively take the hits. This plummet indeed caught us a bit off guard.

GasFeeCryBaby · Answer

The Bank of Japan is causing trouble again, this time it&#39;s really tough, 92,300 was directly breached, long order holders are in despair.