Looking at the daily chart, we could see a huge bullish candle that took it from $53,000 to $62,000 and that's a huge imbalance or what ICT could call FVG.
So, what are we seeing today?
BTC dropping to $55,000 or lower
Are you buying or selling $BTC right now?
Please , this is not financial advice. Ensure you do your own research before investing in anything.
Bitcoin's recent decline is primarily attributed to a combination of factors:
👉👉 Macroeconomic Concerns 1. Recession Fears: Weaker-than-expected economic data, particularly in the US, has intensified concerns about a potential recession. Investors often move away from riskier assets like Bitcoin during economic downturns. 2. Interest Rate Hikes: Central banks, including the Federal Reserve, have been raising interest rates to combat inflation. This reduces the attractiveness of riskier assets like Bitcoin. 👉👉 Market Sentiment 1. Profit-Taking: After a significant rally early this year, some investors might still be taking profits, contributing to downward pressure on the price. 2. Risk-Off Appetite: The overall market sentiment has turned cautious, with investors opting for safer assets, leading to a sell-off in Bitcoin.
👉👉 Regulatory Uncertainty Ongoing regulatory scrutiny of the cryptocurrency industry can create uncertainty and investor hesitancy.
👉👉 Technical Factors Bitcoin's price movements can also be influenced by technical factors like resistance levels, support levels, and trading patterns. 👉👉 Political Factors The ongoing US presidential pre-electoral event has been telling on BTC. The swing highs and lows and multiple consolidations. Regardless of all these, we still believe that BTC will retain its momentum to create a new ATH. Many will regret not following me #ETH_ETFs_Approval_Predictions #VanEck_SOL_ETFS #SOFR_Spike #BinanceTurns7 #Babylon_Mainnet_Launch
Don't You Think There Will Be A Problem If BTC Reaches $200,000?
Let's think of it this way...
The negative impact of BTC hitting $200,000 will center on the traditional monetary system!
Not just that but other facets too
The potential impact of Bitcoin reaching $200,000 on the real world economy is a complex issue that economists are still debating.
Let's take a look at the possible negative effect first.
Increased volatility: Bitcoin is already a volatile asset, and a price increase to $200,000 could lead to even greater volatility. This could disrupt financial markets and make it difficult for businesses and consumers to plan for the future.
Speculative bubble: If the price of Bitcoin rises rapidly, it could be a sign that a speculative bubble is forming. If this bubble bursts, it could lead to a financial crisis.
Loss of confidence: If Bitcoin becomes too widely used as a store of value, it could lead to a loss of confidence in traditional currencies. This could destabilize economies and lead to inflation.
Now, let's take a look at the positive perspective and compare!
Wider adoption: A higher price could lead to wider adoption of Bitcoin, which could benefit the global economy by making it easier and cheaper to send and receive payments.
Financial inclusion: Bitcoin could provide financial inclusion for people who are unbanked or underbanked.
Innovation: The development of Bitcoin has led to innovation in the financial sector, and a higher price could spur even more innovation.