Why did the cryptocurrency market drop today? Bitcoin has dropped below $95,000
Ah, why did the cryptocurrency market drop today? Bitcoin has dropped below $95,000, should we buy the dip? I've heard that whales are making big moves in Cardano, XRP, Dogecoin, and Bitcoin.
Speaking of which, what's happening in El Salvador might have added fuel to the fire for Bitcoin's price. They agreed to change their Bitcoin policy to secure a $1.4 billion loan from the International Monetary Fund (IMF), and just like that, Bitcoin dropped.
Looking at Bitcoin's trend, it hit a new high of $108,364 on December 17, and in just a few days, it has dropped by 12.74%. Now Bitcoin is hovering around a critical support level, whether it can hold depends on the upcoming trend.
However, from the 4-hour chart, the Relative Strength Index (RSI) has fallen below 30, which is usually a signal for a rebound. Perhaps the whales are waiting to buy at a low price right now.
Also, the daily chart for Bitcoin shows that the price and RSI trends are somewhat diverging; previously, the price was rising while RSI fell, and now that the price has dropped, RSI may also need to adjust, potentially leading to a rebound.
The entire cryptocurrency market is also falling along with Bitcoin, with a market cap drop of 9.31%, while trading volume increased by 13.77%. In the past 24 hours, 334,000 traders were liquidated, losing $1.1 billion, it's truly shocking.
What will the market do next? No one can say for sure. Although some believe Bitcoin can hold its price and eventually rebound, the market is currently waiting for a large number of buy orders. Whales usually accumulate assets when the market is sluggish, so we might see that soon.
So traders, you need to stay alert and pay attention to market fluctuations. At this moment, protecting your funds is the most important thing.
As for the next layout direction, I will guide everyone to target lucrative opportunities in altcoins, especially those with high potential projects, where a 10x expected return is not a problem. If you want to make big money in a bull market, like and leave a comment, and I will help you layout the entire bull market!
