Bitcoin has entered its third consecutive day of correction, dropping by 3.5% in the last 24 hours to an intraday low of $92,785. This marks the steepest single-day fall since Donald Trumpās election victory. As Bitcoin teeters near the critical $93,000 support level, traders are asking: Whatās causing this downturn? Letās dive in.
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Key Factors Driving Bitcoinās Drop š
1ļøā£ Bitcoin Options Expiration
This weekās expiration of $9.4 billion worth of Bitcoin options has heightened market volatility.
Put/Call Ratio: 0.83, signaling a tug-of-war between bulls and bears.
Maximum Pain Point: $78,000āmarket makers benefit most if BTC closes near this level.
Open Interest: Concentrated around $82,000 (calls) and $70,000 (puts), suggesting traders are hedging for a wider range.
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2ļøā£ Profit-Taking
After rejecting the $100,000 milestone, many investors have opted to lock in profits, intensifying selling pressure.
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3ļøā£ ETF Outflows
Institutional sentiment has cooled, with significant outflows from Bitcoin ETFs. This hints at reduced interest from large players at current price levels.
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4ļøā£ Macroeconomic Fears
Reports of new tariffs from Donald Trump on imports from China, Mexico, and Canada have rocked traditional marketsāand Bitcoin hasnāt been spared.
The upcoming Core PCE data (a critical inflation metric) could influence Federal Reserve policy.
A higher-than-expected inflation reading could dampen hopes for a December rate cut, putting pressure on risk assets like Bitcoin.
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Bitcoinās Current Levels: Whatās Next? š¦
Support Levels: Bitcoin briefly dipped below $93,000 but recovered to $94,512.
Resistance Levels: Breaking above $96,000 will be key for bullish momentum.
Trading Volume: Up 60% to $84.84 billion, reflecting intense activity.
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What Analysts Are Saying š§
Tony Sycamore (IG Australia): The current pullback is a āhealthy cooldownā after overbought conditions. Markets donāt move in straight lines.
Credible Crypto: A breach of $94,000 could pave the way for $80,000 levels.
Joe Consorti: Bitcoinās correlation with global M2 money supply suggests a potential 20-25% correction in the near term.
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Risks and Opportunities Ahead š
Bearish Risks:
Further Drops: Breaching $93,000 could see BTC test $88,000 or lower.
Regulatory and Macro Uncertainty: Tariff fears and inflation data will drive short-term moves.
Bullish Opportunities:
Institutional Confidence: Recent purchases by MicroStrategy (55,000 BTC) and Semler Scientific reflect long-term trust in Bitcoin.
Bounce Potential: Bitcoinās cooling phase could set the stage for a renewed push toward $100,000.
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Final Thoughts: What Should Traders Do? š”
This dip isnāt the end for Bitcoināitās a natural correction in a volatile market. Use this as an opportunity to assess your strategy.
Avoid Emotional Trades: Donāt panic sell or FOMO buy.
Watch Key Levels: Stay alert for price action around $93,000 and $96,000.
Prepare for the Long Term: Bitcoinās fundamentals remain strong, even amid short-term turbulence.
Keep your eyes on the charts and stay informedāthe next big move could be just around the corner.
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