Bitcoin has recently seen a 5% drop, but this time, overheating is not the reason behind the decline. This sudden downturn seems more like a calculated move rather than a market correction, leading to speculation about possible market manipulation.
High-risk sentiment in the market
Recent data shows a strong U.S. economy with robust PMI figures and plenty of jobs. However, volatile assets have experienced a major incident, marking the second such event in less than a month. Nevertheless, Bitcoin's 5% drop, even as the dollar index hits a two-year high, indicates the strength of cryptocurrency.
Bitcoin's resilience is clearly demonstrated through its recovery performance, especially as institutional investors get involved. However, the high-risk sentiment in the market, with over $114 million in long positions being wiped out, is creating a psychological barrier for retail investors and day traders.
Predicting Bitcoin's next bottom
When Bitcoin previously dropped to $91,000, it had a strong comeback with net outflows reaching $25,000. However, the current net outflow is only $5,000, indicating that the 'buy the dip' moment that many expect has not yet truly begun. While a strong reversal is not anticipated immediately, a deeper pullback to $89,000 — $91,000 could be an ideal point to watch.
Please note that while there has been a recent collapse, expecting an immediate recovery may be overly optimistic. Instead, investors' patience may be tested in the coming days.