Why did Bitcoin drop today? Can BTC rise to $100,000?
An article titled "Why did Bitcoin drop today? Can BTC rise to $100,000?" was published on Coinpedia Financial Technology News.
Bitcoin barely managed to surge to $98,000 yesterday, but then fell below $95,000, shaking the market. It peaked close to $99,500 and has now returned to around $94,427. This is quite a drop, but is this the end or just a temporary pullback? Everyone is guessing what will happen next, so let’s take a look at what’s going on.
Why did it drop?
After Bitcoin reached the high point of $99,500, it dropped about 5%, currently sitting at around $94,427. But strangely, trading volume increased by 60.55%, which indicates that even though the price has dropped, people are still actively buying and selling. Some believe this is just a small correction before Bitcoin rises again.
Key points to note
Bitcoin is currently testing several important price levels. If it can break through the barrier of $95,750, it might rise to $96,000 or even $97,350. Who knows? If it really goes up, it could surge to $98,880 or even $100,000.
However, if Bitcoin cannot get past the $95,750 hurdle, things could get troublesome. The next support points are $93,000, $92,500, and $90,000. If it can't hold these levels, it might drop to $88,000.
What are the big investors doing?
People are particularly concerned about what the big investors, also known as “whales,” are doing. Although they suffered a loss of $526 million in liquidations, with long trades losing over $300 million, the community sentiment remains quite optimistic. The whales are ready to make a big move and surely have some information that we don’t know about.
On the other hand, market sentiment has cooled a bit. The Fear and Greed Index dropped from 94 when Bitcoin was close to $99,000 last week, to 79 now. Also, the RSI is at 41.70, indicating that Bitcoin has cooled down a bit after being overheated. This could be a breather before the market takes action.
What will happen next with Bitcoin?
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