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Cryptocurrency Market Faces Corrections as Bitcoin Whale Selling Sparks Volatility

Major cryptocurrencies face increased selling pressure as whale activity and technical resistance trigger market corrections. Bitcoin’s recent rally to $122,000 reversed sharply after a significant whale transferred 16,843 BTC to institutional trading desk Galaxy Digital, causing an immediate $6,000 price drop and threatening crucial support levels.

Increased volatility plagues Bitcoin markets amid concerns over sustained whale selling. Analysts identify potential downside targets between $107,000 and $110,000 if bearish momentum continues. Market participants are closely monitoring transactional flows for signs of further institutional distribution.

The Ethereum rally similarly stalled just above the psychologically critical $3,000 level. The second-largest cryptocurrency retreated to $2,980 amid overbought technical indicators, with traders now watching essential support at the 200-day Exponential Moving Average ($2,474) and the 50-day EMA ($2,587). Failure to maintain these levels could signal deeper retracements.

Meme token Shiba Inu mirrored broader market weakness, failing to sustain its breakout attempt at the 200-day EMA. SHIB bulls briefly pushed prices above $0.000013 before bears reversed gains, highlighting waning buying momentum. Technical indicators suggest further downside risk if current support zones collapse.

Market analysts attribute recent turbulence to profit-taking near key resistance levels and elevated Relative Strength Index readings across major assets. The combined technical headwinds point toward potential consolidation phases before renewed upward movement can develop.

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