Bitcoin Price Dips Below $105K Amidst Binance Sell-Off
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Bitcoin experienced a significant price drop, falling below $105,000, following a 2.1% decrease within 24 hours. This downturn signals a potential shift in short-term market momentum, with traders increasingly exiting positions. The broader cryptocurrency market mirrored this pullback, but Bitcoin's influence makes its trajectory especially noteworthy. Analysts attribute the decline partly to geopolitical factors, particularly the military engagement between Israel and Iran, which triggered selling across high-risk assets, including cryptocurrencies. Key metrics on Binance, specifically the Net Taker Volume, highlight increased sell-side dominance. According to CryptoQuant's Amr Taha, this volume reached -$197 million, its lowest point since June 6th, indicating traders' urgency to sell at market prices, bypassing limit orders. This metric's seven-hour moving average has remained negative since June 12th, further reinforcing downward pressure. Historically, such extreme negative Net Taker Volume has preceded local price bottoms, suggesting potential capitulation by retail and overleveraged traders. A similar event on June 6th was followed by a 4% Bitcoin price rebound within 24 hours. While the geopolitical conflict acted as a catalyst, accelerating liquidation of long-leveraged positions, analyst Taha maintains a medium-term bullish outlook. The heavy selling might eliminate weaker hands, creating opportunities for long-term holders and institutional investors to accumulate at lower prices. The current situation mirrors previous recovery phases, characterized by contrarian buying and decreased selling pressure, suggesting a potential short-term volatility but a possible medium-term price reversal.
