Galaxy Digital has crashed Bitcoin by 3% with $2 billion in sales.

Bitcoin lost 3% in a day, dropping to $115,115 on the Binance exchange, with the main reason for the decline being large-scale sales from Galaxy Digital, which transferred bitcoins worth over $2 billion to exchanges.

4-hour chart BTC/USDT. Source: cryptocurrency screener Cryptovizor

Galaxy Digital is pressuring the market with large sales.

Trader Daan Crypto Trades indicates that the cryptocurrency is testing the lower boundary of the trading range and has "cleared local liquidity." According to him, most of the sell-off is related to Galaxy Digital, which is actively moving bitcoins to exchanges for sale. These coins belong to a large whale holding 80,000 BTC, and the price of bitcoin has stopped rising since the movement of these funds began.

2-hour chart BTC/USD. Analysis: Daan Crypto Trades

"If a downward breakout occurs from the current range, the next target will be around $113,500, which may become a decent buying zone," notes the trader. He adds that the coin remains in the range for now, but if selling continues, it will be difficult for the bulls to hold their positions.

Market sales create a bearish sentiment

Analyst Skew confirms that the price decline is caused by market sales on spot exchanges. Negative pressure on the price is intensified by short positions that are opened in batches during the decline. Aggressive selling creates a domino effect, provoking further price drops.

5-minute chart BTC/USD. Analytics: Skew

The trader highlights two factors that could change the current situation: the absorption of market sales and the shift from a predominance of short positions to a neutral market state. He pays particular attention to the level of $117,000, which is seen as key — previously it served as support, and now it is becoming a resistance zone.

Caution instead of panic

In a separate post, Skew characterizes the current state of the market as "cautious but not panicked." He explains that panic is usually accompanied by high trading volumes and significant volatility, which is not currently being observed. Nevertheless, the analyst urges to closely monitor the developments.

Cryptotrader and entrepreneur Michaël van de Poppe (Michaël van de Poppe) notes that Bitcoin failed to overcome resistance and did not demonstrate a bullish breakout. However, he sees a positive aspect in the fact that altcoins "are not crashing significantly," as they have already undergone a correction.

According to van de Poppe, as soon as Bitcoin finds its bottom, altcoins will begin the next stage of growth. At the time of writing, the price of Bitcoin was $115,298.

hashtelegraph.com