Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?
A typical high-leverage crisis is brewing

![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage1](https://static.aicoinstorge.com/article/20250530/174857997993506.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage1")

In the past 24 hours, Bitcoin's price has fallen below the critical support level of $106,000. Many might think this is just a routine technical adjustment, but on-chain investors will tell you: this time is different.
Why? Because there is a "heavyweight player" in the market—James Wynn, who has been having a tough time lately. He holds a long position of 1,687 BTC with 40x leverage. According to on-chain data, his liquidation price is around $104,603. Currently, Bitcoin's price is about $105,900 (at the time of writing), leaving a gap of only about $1,300. In a highly volatile market, this little space can be said to be "prone to breaking at any moment."
![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage2](https://static.aicoinstorge.com/article/20250530/174857998192965.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage2")
This not only concerns the profit and loss of a giant whale but could also trigger a series of liquidation cascades—liquidity depletion, market sentiment collapse, and various risks have quietly gathered.

So, is the price range we are currently in a support area or a "fuse" for bears to gain momentum? Let's break it down from a technical structure perspective.

From a technical perspective, five signals are flashing warning lights

1. EMA Turning: Short-term trend turning down, bears begin to take control
   Bitcoin has spent most of the last two days below the 20-day EMA, and this moving average has also started to "turn down"—a typical trend reversal signal.

![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage3](https://static.aicoinstorge.com/article/20250530/174858003561770.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage3")

In simple terms, the 20-day EMA represents the average holding cost of mainstream traders in the medium to short term. Once the price falls below it and the EMA starts to bend down, it indicates that "chips" are beginning to concentrate downward, and the confidence of bulls is dissipating.
For trend traders, this "price break + EMA turning" combination is a strong signal: don't expect a rebound; selling pressure will continue to be released. Moreover, current leverage positions are generally high, and once key levels are breached, stop-loss orders will be triggered one after another, potentially causing prices to plummet.

2. RSI Falls Below 50: Momentum switches, market enters "neutral to weak"
   When Bitcoin surged to $112,000, the RSI approached or even broke 70, indicating "technical overbought." Now, the RSI has quickly fallen below 50 and is hovering between 40 and 45, which signifies that bullish momentum is clearly waning.

![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage4](https://static.aicoinstorge.com/article/20250530/174858003749976.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage4")

More critically, the speed of this RSI decline is even faster than the price itself. This indicates that the market is "mentally exhausted"; even if there is a rebound, the buying power cannot support a decent counterattack, and bears may take the opportunity to push down at any time.

3. MACD Death Cross: Trend confirmation, rebound may just be a "false move"
   The MACD had already "death crossed" a few days ago—meaning the fast line (DIF) crossed below the slow line (DEA), and the histogram turned from green to red, reflecting a trend direction shift from rising to falling.

![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage5](https://static.aicoinstorge.com/article/20250530/174858003911800.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage5")

The MACD reversal usually lags behind the RSI and EMA, but once confirmed, it indicates that the market trend is no longer a temporary pullback but is genuinely turning bearish. In real trading, this MACD death cross often corresponds to a wave-level decline.

4. Volume Decline: This is not a washout, but a panic turnover
   During the period when Bitcoin fell from $110,000 to $105,000, trading volume increased rather than decreased, and on several key down days, there was a noticeable increase in volume.

![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage6](https://static.aicoinstorge.com/article/20250530/174858004073543.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage6")

What does this mean? This is not retail investors taking profits, but rather an increase in proactive selling. A volume decline is a typical bearish confirmation signal. The market is not passively falling; someone is actively unloading.
It is important to note that recent market unease is not only coming from the charts: macro-negative news like "the U.S. imposing tariffs on the EU" is driving risk-averse sentiment. At the same time, on-chain whale positions are approaching liquidation prices, and such a combination of events can easily trigger a capital retreat.

5. Support Lost: $106,000 breached, $104,000 becomes the next defense line
   $106,000, as a round number and psychological support, was originally a line defended by bulls but has now been effectively breached.

![Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage7](https://static.aicoinstorge.com/article/20250530/174858004394299.png "Will Bitcoin Falling Below Whale Liquidation Price Trigger a "Chain Reaction"?aicoinimage7")

Next, the market's focus will shift to around $104,000—this is not only the lower edge of the previous consolidation platform but also near James Wynn's liquidation line. Once this point is breached, a chain liquidation could "open the floodgates," forming a technical cascade, and prices could plummet in a short time, even creating a liquidity gap.

This round is a "defensive battle," not a "bottom-fishing battle"
Currently, it appears that Bitcoin has basically established the initiation of a corrective trend from trend, momentum, volume to price structure. Especially in the critical range of $104,000 to $105,000, if effective support cannot be built, it could become a "trigger" for systemic decline.
For those with heavy leverage positions, the risk is no longer controllable. For ordinary investors, what should be done now is:

• Reduce leverage
• Control positions
• Closely monitor whether $104,000 forms new support

After all, in a high-volatility, heavily leveraged market, "surviving" is always more important than making a profit!

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