Why is the price of Bitcoin down today?
Bitcoin is currently down more than two percent, trading below $90k. Currently, it is experiencing a period of sideways movement, although it is not pleasant, it can create opportunities for traders. While the price of Bitcoin has been relatively stable lately, the biggest question on everyone's mind is how low it can go in the short term and how we can take advantage of these dips.
Why is the feeling red?
The recent decline in the price of Bitcoin may be due to a combination of factors. One big contributor seems to be the continued selling pressure from Bitcoin miners. This selloff weighed on broader market sentiment, especially as miners unloaded their holdings in large numbers.
Adding to the pressure, a Bitcoin miner from the early “Satoshi era” moved 2,000 BTC, which has not been touched since 2010. According to Julio Moreno, head of research at CryptoQuant, these coins have moved up to now and some have already moved. It ended on exchanges, which could increase the selling pressure.
Another factor contributing to the price dip is the Crypto Fear and Greed Index, which recently moved into neutral for the first time since last year. This neutral sentiment may indicate uncertainty among traders, further influencing Bitcoin's price movement.
Key steps to be observed
In the short term, Bitcoin price is approaching important support at $85,000. If it holds above this level, there is still an opportunity for another upward move. However, if Bitcoin falls below $85,000, it could signal a deeper pullback that could target the Fibonacci support areas. A pullback of 10-15% is not necessarily bearish. It could simply be a cooling phase for an overheated market.
Possible short-term conditions
Bitcoin's recent price action suggests indecisiveness, with a three-wave movement that is clearly not bullish. We may be seeing a correction wave in the short term, but the market is still in range. If Bitcoin breaks above recent highs, it could start another rally towards $95,000 or $97,000. However, if it falls below key support levels, a deeper correction could be in place.
