Bitcoin (BTC) has recently plummeted by 6.5%, retreating more than 6460 points. The reasons behind this can be analyzed from two aspects: the behavior of large holders and the distribution of chips.
Firstly, Bitcoin failed to effectively break the key chip resistance level at 98580 during its upward movement. Large holders in the Binance spot market sold off a significant amount around 98500, totaling 11.03 million dollars.
This operation formed a shooting star candlestick pattern within a 90-minute period, which is typically regarded as a signal of a market top.
Subsequently, the price of Bitcoin retraced to 96010 but failed to stabilize at that level. After entering a chip vacuum area, the price accelerated its decline, quickly breaking below 93000.
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Currently, Bitcoin is testing the support level at 94340, and the performance of this support level will determine the future trend.
If this support level holds, the price may retest 96010; if it breaks down, the support level below may be at 92000.
The role of the chip peak in the market is crucial:
When the chip peak is below the price, the support effect is significant, and if it holds, there is a possibility of a rebound; if the chip peak is above, the price will face downward pressure if it does not break through the resistance level.
