BTC price falls towards previous support point

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The recent price fluctuations of Bitcoin have once again attracted the attention of the market. After hitting a low of $92,800, despite a brief rebound close to $100,000, it failed to break through the key resistance level and has now fallen back to the $96,000 support area. This trend may indicate a larger-scale correction, especially considering the following market trends and analysis factors:

1. Support and resistance levels

The $96,000 support level: a key level that the market is currently paying attention to. If it falls below, it may trigger greater bearish pressure, and the target price may move to the $90,000 area or even lower.

The $100,000 resistance level: This is an important threshold for Bitcoin to break through new highs. If it can effectively break through and stabilize, it will open up space for further gains.

2. Potential 30% pullback risk

Based on historical data and technical analysis, the market generally expects that Bitcoin may face a 30% pullback, which may pull the price back to near the high point in March 2024.

Pullback drivers: Weakening of bullish power in the short term.

Macroeconomic uncertainty (such as Fed policy or global market volatility).

Profit-taking pressure.

3. Increase in trading volume

The 24% increase in trading volume in the past day: indicates that the market has increased its attention to the current price level, which may be the entry of bargain hunting funds or the increase in positions by bears.

Market sentiment changes: Although prices have fallen, the increase in trading volume may indicate that the market is accumulating momentum for the next move.

4. Return of investor optimism

Despite large price fluctuations, data shows that the market's interest in Bitcoin remains strong. This can be seen from the recent high trading volume and on-chain activity.

Long-term trend optimism: The gradual return of institutional investors, the growth of the ETF market, and the steady improvement of on-chain indicators indicate that Bitcoin still has the potential to rise in the long term.

5. Short-term strategy recommendations

Focus on the $96,000 support level:

If it holds effectively, it may rebound in the short term.

If it falls below, it may further test $90,000 or lower.

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