Why Is BTC Dumping Today?

Reason Behind BTC Dump

BTC fell as it reached a high time frame resistance and a liquidity pool at $70K. Adding to the bigger trend continuation as the market is still in a downtrend and bottom is still not close. Bears are actively selling and dominating for the time being. Chasing bottoms is highly risky here. Better to look for DCAing below $50K.

Liquidations

A total of $295M got liquidated out of which $232M were longs and only $83M shorts got liquidated yesterday. The fall was significant wiping out 2/3 of the big gain. Also today on 28 Feb 2026: The daily got flushed during the open.

Learn about liquidation heatmap here: Liquidation Heatmaps Explained: How Pro Traders Identify Liquidity

A total of $80M got liquidated today so far. Currently the market is in a bearish trend. Aggressive bounces are for shorting and shorts are having high probability of winning here.

Fall Across the Board

This is not an isolated BTC event.

ETH, SOL, and other large caps are down significantly. Meme coins are bleeding harder. High-beta altcoins are seeing 2x–3x the percentage drop compared to BTC.

That tells us one thing: this is broad risk-off behavior.

When money exits, it exits the entire crypto ecosystem first, especially speculative plays.

Is It Manipulation?

Every dump triggers the same questions.

Is a big market maker behind it?
Is a major exchange unloading?

There is no confirmed evidence that any specific firm is responsible for today’s drop. Large players always influence liquidity, but today’s move appears more technical and macro-driven rather than a single-entity event.

Blaming one name rarely explains the full picture.

The Macro Angle

Zoom out.

Crypto does not move in isolation anymore. It reacts to:

• Global liquidity conditions
• Interest rate expectations
• Equity market weakness
• Dollar strength
• Risk asset sentiment

If traditional markets show weakness or uncertainty, BTC often becomes the first asset traders de-risk from because it trades 24/7 and offers immediate liquidity.

Today’s move aligns more with broader risk-off positioning rather than an internal crypto-specific crisis.

Timeline Context

Where are we in the cycle?

Bitcoin had already seen a strong recovery move in recent weeks. Momentum was stretched on lower timeframes. When momentum cools and liquidity thins near month-end, volatility expands.

Also remember:
End-of-month positioning, derivatives expiry adjustments, and portfolio rebalancing often increase volatility during the last week of the month.

28 February fits that timeline perfectly.

What This Means

A dump does not automatically mean the macro trend is broken.

It could mean:

• A deeper correction before continuation
• A liquidity sweep before reversal
• Or the beginning of a larger retracement

What matters now is how BTC reacts at the next major support level. If buyers step in aggressively, this becomes a shakeout. If support fails cleanly on high volume, the correction likely extends.

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The Bigger Perspective

Crypto remains a high-volatility market.

Sharp drops are part of the structure, especially after leverage builds up. The key is to differentiate between:

Short-term panic
and
Long-term structural breakdown

Right now, this looks like aggressive deleveraging rather than a confirmed cycle shift.

Final Thought

Markets don’t move in straight lines.

After periods of optimism and leverage buildup, resets are inevitable. Whether this becomes just another shakeout or something larger depends on how BTC behaves over the next few sessions.

Volatility creates fear.
But it also creates opportunity for those who stay objective.

You would like to read: Can Bitcoin Fall below $10K? Wikipedia Founder Predicts

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