Why is Bitcoin Price Down Today?
Bitcoin is currently down more than 2%, trading just below the $90,000 mark. It is currently going through a period of sideways movement, which, while not exciting, may present opportunities for traders. While Bitcoin’s price has been relatively stable of late, the bigger question on everyone’s mind is how much it might fall in the short term, and how we can take advantage of those dips.
Why do emotions turn red?
The recent decline in Bitcoin price could be caused by a number of factors. One of the main factors appears to be ongoing selling pressure from Bitcoin miners. This sell-off weighed heavily on broader market sentiment, especially as miners sold off their holdings en masse.
To add insult to injury, an early “Satoshi Nakamoto era” Bitcoin miner moved 2,000 BTC that had remained untouched since 2010. According to Julio Moreno, head of research at CryptoQuant, these Bitcoins have never been moved to date, and some of them have already been. Eventually making its way onto exchanges, this could increase selling pressure.
Another factor contributing to the price decline is the Cryptocurrency Fear and Greed Index, which recently shifted to a neutral position for the first time since last year. This neutral sentiment may signal uncertainty among traders, further affecting Bitcoin’s price action.
Key levels to watch
In the short term, Bitcoin price is approaching Important support is at $85,000. If it remains above this level, another rise is still possible. However, if Bitcoin falls below $85,000, it could signal a further pullback that could target lower Fibonacci support areas. A 10-15% retracement is not necessarily bearish; it may simply be the cooling phase of an overheated market.
Potential short-term scenarios
Bitcoin’s recent price action shows indecision, with three waves that are not clearly bullish or bearish. We may see a pullback wave in the short term, but the market remains range-bound. If Bitcoin breaks out of its recent highs, it could rise again towards $95,000 or even $97,000. However, if it breaks below key support, a deeper correction could be in store.
