After an explosive rally to $123K, Bitcoin is cooling off—fast. The crypto giant slid under $118,000 in early Monday trading as profit-taking, miner selling, and whale transfers rattled the market.
The sharp drop comes after weeks of aggressive upside momentum. On-chain data shows miners offloading holdings at a pace not seen in months, while long-dormant wallets moved thousands of BTC to exchanges. Analysts flagged two massive transfers—totaling nearly 17,000 BTC—as a major catalyst, adding billions in sell-side pressure.
Liquidations followed quickly. Over $500 million in positions were wiped out in just 24 hours, hitting more than 130,000 traders. Roughly $400 million of that was cleared in a four-hour window.
Technical indicators had already warned of exhaustion. Bitcoin was deep in overbought territory, and momentum had begun to fade despite bullish signals on the MACD. Market watchers suggest this pullback may simply be a reset before the next leg up.
Outside of BTC, attention is shifting. Altcoin rotation is gaining speed, with Bitcoin dominance slipping from 65.1% to 63.5%. The Altseason Index jumped 45% last week, a sign that traders are diversifying while BTC cools off.
Macro factors may also be playing a role. U.S. inflation data and Crypto Week speculation have created uncertainty, making investors nervous at the top.
Still, some see this move as strategic. Analysts at Crypto Express believe the dip could be an attempt to fill a CME gap near $115K—possibly setting up for a stronger push higher once the dust settles.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
Source: https://coindoo.com/why-is-bitcoin-falling-after-hitting-a-new-high/