Bitcoin recently faced a sharp correction, dropping from $99,500 to $94,427 a decline of over 5%. Despite this, trading volumes surged by 60.55%, signaling strong market activity. But is this just a temporary pullback, or are we headed for more volatility?
Why Did Bitcoin Drop?
Profit-Taking: After nearing $100K, many traders likely secured gains, triggering a sell-off.
Options Expiry Pressure: A $9.4 billion Bitcoin options expiry is approaching, causing short-term price fluctuations.
Cooling Sentiment: The Fear & Greed Index dropped to 79 from last week’s 94, indicating cautious market behavior.
Key Levels to Watch 👀
Resistance: BTC must break $95,750 to aim for $97,350 or $98,880, and possibly $100K.
Support: Failing to hold $93,000 could push prices to $92,500 or even $88,000.
Market Insight
Big investors (whales) seem poised for action despite $526 million in liquidations. The RSI stands at 41.70, suggesting the market is stabilizing after an overheated rally.
What’s Next? 🧐
Bitcoin’s next move hinges on breaking resistance or holding key support levels. The $100K milestone remains achievable, but near-term caution is advised as the market digests recent gains and external pressures.
Sources
https://coinpedia.org
https://www.tradingview.com
