7 Reasons Why #BTC Will Fall to $32k (Part 1)

Hello everyone, I hope you're having a great day. In my previous post, I shared my thoughts on the market's health. In this post, I will provide seven reasons why I believe #BTC will experience a decline and reach $32k.

1. The market needs a period of consolidation to regain strength.

Similar to an athlete or a mountain climber, the crypto market, led by Bitcoin, often requires a moment to catch its breath before embarking on a new upward trend. Just like a climber needs to pause and recuperate after reaching a peak, Bitcoin needs a correction phase after hitting resistance at $48k to build up more liquidity and volume before aiming for new highs.

2. Decrease in Bitcoin's funding rates.

Since the $BTC peak in early January at $48k, it has been on a downward trend. According to CryptoQuant analyst, MAC_D, this trend may continue. He suggests that "to end the current bearish trend, a capitulation event needs to occur, involving massive liquidation of leveraged long positions."

These statements hold weight as, on January 2nd, Bitcoin's hourly funding rate reached 0.049%, indicating speculative long positions, but it then decreased to below 0.02% by the end of January.

If BTC does indeed decline, we may initially reach $38.5k, and if the downward momentum intensifies, we could approach the $32k level. This could present an excellent buying opportunity for long-term investors.

However, it's important to note that the market is unpredictable, and no one can accurately predict the future. I am simply offering these reasons to explain why BTC may drop to $32k for a more robust bull run.

#TradeNTell #Write2Earn.