Galaxy Digital triggered a significant Bitcoin market downturn after moving approximately 80,000 BTC to cryptocurrency exchanges. This large-scale transfer initiated over $500 million in liquidations, intensifying selling pressure and contributing to sharp price declines.
Technical indicators now show Bitcoin’s Relative Strength Index (RSI) at rare exhaustion levels, historically signaling potential market reversals. Analysts observe bullish RSI divergences – with the indicator forming higher lows despite Bitcoin’s lower price lows – suggesting waning downward momentum.
Key technical levels have emerged near current prices, with $114,500 viewed as critical support and $117,000 identified as the primary resistance target should a rebound materialize. Significant ask orders concentrated up to $118,500 may influence whether Bitcoin consolidates or breaks higher.
While market sentiment remains volatile following the substantial sell-off, the combination of extreme RSI readings and technical divergences raises prospects for a corrective rebound. Market participants are closely monitoring these technical thresholds for near-term price direction.