Why Did Bitcoin Suddenly Drop Below 117,000 USD?

Bitcoin has fallen more than 1.6% today, dropping below 117,000 and testing the 116,000 zone. After holding near the upper Bollinger band in recent sessions, this decline signals a clear shift in market sentiment. So, what is the reason behind this sell-off? Bitcoin Price Prediction: Major Sell Pressure from Galaxy Digital Let's start with a sensitive issue. Galaxy Digital, one of the largest cryptocurrency investment firms, is said to have transferred over two billion dollars' worth of Bitcoin to centralized exchanges. These are not idle whale transactions. These are proactive transactions in batches, ranging from ten to fifty million dollars, likely aimed at liquidating positions. Some analysts suspect that this is due to customers withdrawing funds or due to a strategy of reallocating the investment portfolio to Ethereum. Regardless of the reason, the mass sell-off of Bitcoin into the market is enough to disrupt sentiment and trigger automatic sell orders across exchanges. Bitcoin Price and the Fed's Shadow What is macro risk? The upcoming Federal Reserve meeting on July 30 is predicted by the market to have no immediate interest rate hikes, but all attention is focused on Jerome Powell's tone. Will the Fed continue to maintain a cautious stance or hint at tightening policy? With inflation not fully under control and the economy still growing hot, traders are preparing for volatility. The upcoming meeting of the Federal Reserve on July 30 is causing concern among cryptocurrency traders. Although the market expects interest rates to remain unchanged, the real risk lies in Jerome Powell's tone. If the Fed signals that inflation remains a concern or hints at delaying interest rate cuts, risky assets like Bitcoin prices may be affected. Investors tend to retreat from volatile assets when monetary policy becomes unstable or restrictive. On the other hand, a neutral or dovish statement could ease market tensions and trigger a recovery. Until the Fed speaks, uncertainty may limit any strong upward movements of Bitcoin. Technical Image: Support is Falling

Technically, the price of Bitcoin has not been able to break through the resistance level near 120,000. The daily chart shows that the price is falling towards the 20-day simple moving average, which is currently around 116,200. This level is very important. Closing below this level will increase the likelihood of the price moving towards 114,000 and possibly even 112,000, in line with the maximum pain zone of the options. The Bollinger Bands are starting to contract slightly, a signal that volatility may increase if a clear trend emerges. Currently, the market is stuck in indecision, caught between the caution of institutions and the weight of recent profit-taking. Bitcoin Price Prediction: Where Will BTC Go From Here? In the short term, everything revolves around the zone of 114,000 to 116,000. If the buyers can protect this zone, there is still a chance for recovery as we enter the new week. However, if the sellers push the price below 114,000 and the Fed takes a cautious or hawkish stance, Bitcoin may witness a deeper pullback to the zone of 108,000. On the contrary, if Jerome Powell's comments indicate a neutral or dovish outlook, Bitcoin could rebound strongly and retest the 120,000 mark. This makes next week a decisive moment for both the bulls and the bears. Currently, Bitcoin is not collapsing. It is resetting. And how it reacts to this pressure will shape the trend for the remainder of the quarter.