The price of Bitcoin has dropped by 12% from its all-time high of just over $108,000 on December 17th, and it appears that the drop is just getting worse. The asset reached a low of $93,810 during Monday morning’s Asian trade. The price dropped again after quickly regaining $96,000. According to crypto expert “Rekt Capital,” these losses have caused a “bearish engulfing” weekly candle to emerge. The slump has completely wiped out a month’s worth of progress.
Corrections in Bitcoin Are Commonplace
From a historical perspective, the analyst stated that week eight in Bitcoin price discovery usually signifies a corrective week when comparing market cycles. Even though it was less drastic than week eight, he still considered week nine of 2017 corrective. Last week was the asset’s worst performance since Donald Trump was elected president in early November.
Bitcoin Experiences, Even Trump’s support for cryptocurrencies has been eroded by. The Federal Reserve’s cautious attitude. According to David Lawant, head of research at crypto top broker FalconX, there might be further volatility in the coming days due to the “low-liquidity environment.”
On December 27, he estimates that contracts for more than $18 billion worth of Bitcoin and Ethereum will expire, making it the largest-ever crypto options expiration event. Crypto Challenges: On Thursday and Friday, investors were frightened by the market decline, and spot Bitcoin ETFs lost over $950 million.
Analysis of Technical Data for the Future
Bitcoin can’t seem to break through the formidable resistance, and the technical price action is bearish. Support levels between $92,000 and $91,000 have moderated worries about a possible collapse following the recent decline below $95,000. Once Bitcoin exceeds these levels, $90,000 can become a psychological hurdle for traders.
Several things might influence the ultimate fate of Bitcoin. Global economic conditions might dampen investment activity, but a regulatory resolution could stabilize the asset. After Bitcoin’s recent decline, traders and experts will watch for price action that consistently moves over. Key resistance levels to signal a comeback.
Summary
The market is unpredictable because this was Bitcoin’s worst week since Trump was elected in 2016. The market is expected to stabilize in the next weeks, allowing long-term investors to enter at lower levels after the severe plunge. Market sentiment, new laws, and overall economic conditions are all potential influences on Bitcoin Experiences. Bitcoin’s downturn is brutal, but many predict it will recover if market circumstances improve.
