Today's drop in the price of $BTC to around $90,500 was caused by a combination of macroeconomic factors, technical market signals and sudden market movements:
1. Congested futures positions: Evidence points to high levels of leverage in the Bitcoin market. As a result, the price drop below $95,000 caused a massive liquidation of futures contracts, further exacerbating the decline. About $1.1 billion of positions were liquidated in the last 24 hours.
2. Macroeconomic factors: The publication of the employment report in the US and the increase in market expectations for a tightening of monetary policy caused uncertainty among investors. This coincided with technical correction signals, in particular the formation of a "double top" pattern at the level of $95,000.
3. Activity of big players: Some analysts suggest that big sales, including transactions from Mt. Gox (a previously closed crypto exchange), could cause additional pressure on the market.
4. Technical Support Levels: Technically, the drop below $95,000 triggered a test of the $90,000 level. However, some analysts believe that this is a short-term correction and the market may recover in the near future.
The suddenness and intensity of the fall was also enhanced by the lack of liquidity at certain levels, which is typical of the cryptocurrency market.
