spot_img
7 C
London
Saturday, December 7, 2024
HomeCoinpedia NewsWhy is Bitcoin Going Down?

Why is Bitcoin Going Down?

Date:

Related News

Dogwifhat (WIF) Set to Explode, Experts Eyes in $5

The post Dogwifhat (WIF) Set to Explode, Experts Eyes...

Coinbase Achieves Major Milestone, Lists Its 100th Perpetual Futures Contract

The post Coinbase Achieves Major Milestone, Lists Its 100th...

Will XRP Reach $3? Whale Buys $288 Million in Tokens

The post Will XRP Reach $3? Whale Buys $288...

China’s Central Bank Expands Gold Reserves In November After 6-Month Pause

The post China’s Central Bank Expands Gold Reserves In...

Bitcoin Crash Looming? BTC Price At Risk of Dropping 50% – Here’s Why

The post Why is Bitcoin Going Down? appeared first on Coinpedia Fintech News

Bitcoin is currently testing levels below the crucial $95k mark and is down by more than four percent in the last 24 hours. This comes after a recent announcement from Michael Saylor revealing that MicroStrategy purchased another $5.4 billion worth of Bitcoin. This brings their total holdings to around 386,500 Bitcoins, valued at nearly $22 billion. While the market is optimistic about Bitcoin’s rise, certain rug-pull events are stopping the bullish momentum. 

So what’s behind this short-term correction, let’s find out. 

In their latest analysis, Altcoin Daily dives into why Bitcoin is seeing a sharp drop despite nearing a significant 100K milestone. The crypto market is facing turmoil, and the reasons boil down to scams, hype-driven trading, and frothy market behavior.

The Chaos in the Market

Altcoin Daily highlights a rise in meme coin scams and rug pulls. From influencers launching pump-and-dump schemes to live-streamers openly discussing how to manipulate their followers, trust in the market is taking a hit. One example is a TikTok influencer who lost $4,000 and later scammed his fans out of $112,000, showcasing the unethical activities eroding confidence in the space.

This behavior is leading to market corrections as the excitement and speculative hype are replaced with a demand for quality and transparency.

Bitcoin’s Support Levels and Outlook

This means that Bitcoin’s correction is part of a broader market cleanup. Current support levels are seen at $90,000-$92,000, with a deeper pullback to $70,000-$72,000 possible if market conditions worsen. Even if BTC does see a pullback, the overall bullish trend remains intact for the long run. However, the analyst reassures viewers that dips are a normal part of bull markets. 

Big Players Are Still Interested

Despite the chaos, institutional interest in Bitcoin remains strong. The analyst references Anthony Pompliano’s remarks about Bitcoin being a bottom-up adoption story, with individuals leading the way before institutions and governments follow. With Bitcoin nearing the $2 trillion market cap, large capital pools like pension funds and central banks are starting to take notice.

Moreover, there’s significant liquidity around the $100,000 mark, especially around $99,700. This could trigger a short squeeze if Bitcoin breaks above this level, potentially pushing prices higher. However, in the short term, Bitcoin is likely to face resistance at $100,000, leading to continued consolidation before any potential breakout.

It’s time to make a wise investment decision as Bitcoin may see some dips in the coming months before it hits the $100K mark and it could be your only chance to to enter the market. Are you ready?

spot_img

Trending News

LEAVE A REPLY

Please enter your comment!
Please enter your name here