Bitcoin has entered its third consecutive day of correction, dropping by 3.5% in the last 24 hours to an intraday low of $92,785. This marks the steepest single-day fall since Donald Trump’s election victory. As Bitcoin teeters near the critical $93,000 support level, traders are asking: What’s causing this downturn? Let’s dive in.

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Key Factors Driving Bitcoin’s Drop 📉

1️⃣ Bitcoin Options Expiration

This week’s expiration of $9.4 billion worth of Bitcoin options has heightened market volatility.

Put/Call Ratio: 0.83, signaling a tug-of-war between bulls and bears.

Maximum Pain Point: $78,000—market makers benefit most if BTC closes near this level.

Open Interest: Concentrated around $82,000 (calls) and $70,000 (puts), suggesting traders are hedging for a wider range.

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2️⃣ Profit-Taking

After rejecting the $100,000 milestone, many investors have opted to lock in profits, intensifying selling pressure.

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3️⃣ ETF Outflows

Institutional sentiment has cooled, with significant outflows from Bitcoin ETFs. This hints at reduced interest from large players at current price levels.

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4️⃣ Macroeconomic Fears

Reports of new tariffs from Donald Trump on imports from China, Mexico, and Canada have rocked traditional markets—and Bitcoin hasn’t been spared.

The upcoming Core PCE data (a critical inflation metric) could influence Federal Reserve policy.

A higher-than-expected inflation reading could dampen hopes for a December rate cut, putting pressure on risk assets like Bitcoin.

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Bitcoin’s Current Levels: What’s Next? 🚦

Support Levels: Bitcoin briefly dipped below $93,000 but recovered to $94,512.

Resistance Levels: Breaking above $96,000 will be key for bullish momentum.

Trading Volume: Up 60% to $84.84 billion, reflecting intense activity.

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What Analysts Are Saying 🧠

Tony Sycamore (IG Australia): The current pullback is a “healthy cooldown” after overbought conditions. Markets don’t move in straight lines.

Credible Crypto: A breach of $94,000 could pave the way for $80,000 levels.

Joe Consorti: Bitcoin’s correlation with global M2 money supply suggests a potential 20-25% correction in the near term.

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Risks and Opportunities Ahead 🚀

Bearish Risks:

Further Drops: Breaching $93,000 could see BTC test $88,000 or lower.

Regulatory and Macro Uncertainty: Tariff fears and inflation data will drive short-term moves.

Bullish Opportunities:

Institutional Confidence: Recent purchases by MicroStrategy (55,000 BTC) and Semler Scientific reflect long-term trust in Bitcoin.

Bounce Potential: Bitcoin’s cooling phase could set the stage for a renewed push toward $100,000.

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Final Thoughts: What Should Traders Do? 💡

This dip isn’t the end for Bitcoin—it’s a natural correction in a volatile market. Use this as an opportunity to assess your strategy.

Avoid Emotional Trades: Don’t panic sell or FOMO buy.

Watch Key Levels: Stay alert for price action around $93,000 and $96,000.

Prepare for the Long Term: Bitcoin’s fundamentals remain strong, even amid short-term turbulence.

Keep your eyes on the charts and stay informed—the next big move could be just around the corner.

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