Iran threatened to retaliate against Israel, and the decline in the BTC price accelerated after this statement. As of now, there is a risk of liquidation of $ 3.5 billion in long positions at $ 95,000. Bitcoin may fall to $ 86,622 and $ 81,400 as it has entered the oversold zone. At the time of writing, BTC fell below $ 96,000, and altcoins also began to experience double-digit losses. Hours ago, it was predicted that Bitcoin could experience a short-term decline from $ 96,203 due to the deviation in the RSI. As in every uptrend, intermediate declines are inevitable.$BTC
Iran’s statements accelerated the decline in BTC prices. At the time of writing, Bitcoin fell below $96,000, and the decline in Ethereum negatively affected altcoins. DOGE lost 11%, XRP 16%, and ADA 14%. Such rapid declines after rapid gains are seen as part of market dynamics.
The real concern is that Bitcoin could end the day in the red and a drop to $95,000 could trigger the liquidation of $3.5 billion worth of long positions. If Bitcoin falls below $95,000, it could be the beginning of a more difficult period for altcoins.
For Bitcoin, $97,138 is an important support level for the continuation of the rise. In case of a decline, the $94,197 level needs to be protected. Otherwise, prices could fall to $86,622 and $81,400. $95,000 is an important psychological resistance level for investors, and selling pressure could increase below this level, making the market more dangerous.
Although there is uncertainty in the short term, positive developments such as Trump taking office on January 20 and the increase in Bitcoin reserves are expected to support the rise in the market throughout the first quarter.
