Why is Bitcoin going down?
Bitcoin is currently testing a level below the crucial $95,000 level and is down more than four percent in the last 24 hours. This comes on the heels of Michael Saylor's announcement that MicroStrategy has bought another $5.4 billion worth of Bitcoin. This brings their total holdings to 386,500 Bitcoins, valued at $22 billion. While the market is optimistic about Bitcoin's rise, some distant pool events are halting the momentum.
So what is behind this short-term correction, let's find out.
In their latest analysis, Altcoin Daily dives into why Bitcoin is in a sharp decline despite reaching the landmark 100K milestone. The crypto market is experiencing turmoil, the reasons being for scams, speculative trading and bubble market behavior.
Chaos in the market
Altcoin highlights daily meme coin scams and rug pullers. From influencers launching pump and dump programs to live streamers openly discussing how to leverage their followers, trust in marketing is paying off big. One example is a TikTok influencer who lost $4,000 and later defrauded his fans out of $112,000, destroying the site's credibility.
This behavior is leading to market corrections as the excitement and speculative noise is replaced by a desire for quality and transparency.
Bitcoin Support Levels and Outlook
This means Bitcoin's correction is part of a broader market clearing. Current support levels are seen at $90,000-$92,000, and a deeper return to $70,000-$72,000 is possible if market conditions worsen. Although BTC has seen a pullback, the overall bullish trend remains intact for a long time. However, the analyst assures viewers that dips are a normal part of bull markets.
Big players are still interested.
Despite the chaos, institutional interest in Bitcoin remains strong. Analyst Anthony Pompliano cited Bitcoin as a story of bottom-up adoption. As Bitcoin nears a $2 trillion market cap, large pools of capital like pension funds and central banks are starting to take notice.
Additionally, there is a significant amount of cash around the $100,000 mark, especially around $99,700. This could trigger a short squeeze if Bitcoin breaks above this level, which could push the price higher. However, in the short term, Bitcoin may face resistance at $100,000, leading to further consolidation ahead of any potential breakout.
Now is the time to make a wise investment decision as Bitcoin may see some bears in the coming months before it reaches the $100k mark and may be your only chance to get into the market. are you ready?
