Analysis of Today's Bitcoin Price Drop

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The price of Bitcoin has dropped over 2% today, hitting a low of $92,941 on Sunday. Although it has slightly rebounded, trading above $93,000, the overall market remains weak.

According to a report by Santiment, the market generally declined after Christmas, but there are positive signs showing that whales are transferring stablecoins to exchanges. This suggests that the market may enter a cooling period, similar to the trends seen after previous halving events. Historically, Bitcoin typically rebounds in the year following a halving.

Additionally, global liquidity and government policies also impact the market. U.S. Treasury Secretary Janet Yellen announced that the United States will hit its debt ceiling in mid-January, which may lead to more printing of money and quantitative easing policies, creating favorable conditions for assets like Bitcoin.

Future Trends of Bitcoin

In the short term, Bitcoin is currently in a range-bound fluctuation. If the price remains below $94,270, it may further decline, targeting around $91,400. Conversely, if it breaks through this resistance level, a price rebound may occur. However, the current price trend remains weak, and any breakout below support levels should be monitored to confirm whether further declines will happen.

Looking ahead, the market is expected to be relatively calm in January, with real market activity starting in February. March could be a strong month, while April and May may experience consolidation due to the tax season. After summer, the market may warm up again, continuing into the fourth quarter.

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