Why is Bitcoin down today? Will BTC Cross $100K?
Bitcoin sent shockwaves through the market as it fell below $95,000 yesterday after peaking above $98,000. It reached a high of $99,500, but is now down to $94,427. That's quite a drop, but is it the end of the road or just a temporary dip? People are still talking about what's going to happen next, so let's take a closer look at what's going on.
What is the cause of this drop?
Bitcoin hit a high of $99,500, then fell by about 5%. Right now, it's trading around $94,427. But here's the thing—trading volume actually increased by 60.55%, which means people are still actively buying and selling despite the price drop. Some think it's just a quick correction before Bitcoin takes another shot at soaring higher.
Key steps to be observed
Currently, Bitcoin is trying some important steps. If it can break through the $95,750 resistance, we could see it climb to $96,000 or even $97,350. And who knows? If it really does go, we could see $98,880 or a push to $100,000.
But if it fails to get past the $95,750 mark, things could get tricky. The next support levels are at $93,000, $92,500 and $90,000. If Bitcoin fails to hold those, it could drop to $88,000.
What are the big investors doing?
One thing that stands out is the big investors or the so-called “whales”. Despite losing $526 million in liquidity from more than $300 million in long trades, the community remains positive. Whales are ready for big moves, clearly seeing something they don't know otherwise.
On the downside, market sentiment has cooled. The fear and greed index fell to 79, compared to a high of 94 last week when bitcoin was nearing $99,000. Additionally, the RSI is at 41.70, suggesting that Bitcoin is about to cool down a bit after overheating. The market may be taking a breather before the next move.
What's next for Bitcoin?
Bitcoin's next steps are still up in the air. If it can break through that $95,750 resistance, we could see a good deal. But if it doesn't, it may continue to slide down. Either way, a lot is happening, and traders are keeping a close eye on how things play out. The price drop could be a psychological effect on the upcoming $9.4 billion Bitcoin options expiration on Friday.
The next few days are going to be exciting!
