Under increasing selling pressure, the U.S. government is authorized to sell 69,370 BTC, and Bitcoin falls below $93,000

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Bitcoin Price Correction and Market Adjustment: Future Outlook

Following significant growth in the last two months of 2024, the recent correction of Bitcoin (BTC) is a normal phenomenon expected by the market. As of now, the price of Bitcoin is approximately $93,655, down more than 3% in the past 24 hours, hitting an intraday low of $92,806. This correction is not limited to Bitcoin; the entire cryptocurrency market, including altcoins, has also seen significant declines in the past 24 hours, resulting in over $483 million in liquidations, most of which were from long traders.

Background Factors for Bitcoin's Correction

Support Level Approaching:

The price of Bitcoin is nearing the critical support level of $92,000, and market concerns about further corrections have significantly increased. As the Fear and Greed Index drops from 78% to 69%, the shift in sentiment may signal a heightening of cautious market sentiment.

Technical Signals:

According to analysis by Coinspeaker, the potential head and shoulders (H&S) pattern in Bitcoin's price may bring further downward pressure, especially in the case of a bearish divergence in the RSI (Relative Strength Index). Notable analyst Peter Brandt noted that Bitcoin's daily chart pattern may be forming a "camel-like decline," "crash-like decline," or "pump-like decline" pattern. If the price of Bitcoin continues to close below the support level of $92,000, it may lead to a short-term drop in price to the range of $85,000 to $86,000.

Government Influence and Market Sell-off: U.S. Government's Bitcoin Sale: A U.S. court has approved the sale of 69,370 Bitcoins, which come from the defunct dark web market Silk Road. The market sell-off pressure from this Bitcoin has negatively impacted prices, especially in the context of $6.5 billion in market value being sold.

Market Liquidation: Additionally, due to net cash outflows from U.S. spot Bitcoin ETF issuers reaching $582 million, such as Fidelity's FBTC and BlackRock's IBIT facing net cash outflows of $258 million and $124 million respectively, this further intensified the selling pressure in the market.