Recent Price Volatility Situation
Yesterday, Bitcoin first broke through $98,000, then plummeted significantly below $95,000, causing a considerable impact on the market. Its price once approached $99,500, but has now fallen back to about $94,427, marking a significant decline. This has sparked heated discussions in the market, with everyone speculating on the next movement.
Price Decline Reason Analysis
Bitcoin has dropped about 5% from its high of $99,500, currently trading around $94,427. Notably, during this period, trading volume actually increased by 60.55%, indicating that even as prices fall, market participants are still actively buying and selling. Some believe this decline is merely a quick pullback before Bitcoin rises again.
Key Level Attention Points
Currently, Bitcoin is testing some important levels. If it successfully breaks through the resistance level of $95,750, its price may rise to $96,000 or even $97,350. If the subsequent upward momentum is good, it may reach $98,880, or even surge towards $100,000.
If Bitcoin cannot break through the significant barrier of $95,750, the situation may become tricky. The subsequent support levels are $93,000, $93,500, and $90,000. If Bitcoin cannot hold these support levels, the price may further drop to $88,000.
Large Investor Dynamics
The movements of large investors, known as 'whales', are highly watched. Despite losing $526 million during the liquidation process, including more than $300 million in long trades, the overall sentiment in the community remains relatively positive.
These 'whales' seem to be prepared for significant actions ahead, and they likely possess information that others are not aware of.
Market Sentiment Status
Market sentiment has cooled down. The Fear and Greed Index has dropped from last week's peak of 94 when Bitcoin was close to $99,000, to the current 79. Additionally, the Relative Strength Index (RSI) is at 41.70, indicating that Bitcoin has cooled down after previously overheating, and the market may be adjusting and catching its breath for the next move.
Outlook on the Next Movement of Bitcoin
The next movement of Bitcoin remains uncertain. If it can break through the resistance level of $95,750, a decent rebound is expected; conversely, if it cannot break through, it may continue to decline.
In summary, the current market situation is complex and changing, with many things happening, and traders are closely monitoring developments. Moreover, this price drop may also have a psychological impact on the $9.4 billion Bitcoin options expiring on Friday.
