Bitcoin has just dropped below the threshold of 118,000 USD, trading at 117,948.10 USD with a decrease of 1.61% for the day.
This adjustment occurs as the cryptocurrency market experiences strong volatility, affecting investor sentiment and trading trends in the short term.
MAIN CONTENT
Bitcoin dropped to 117,948.10 USD, down 1.61% for the day.
This index reflects the adjustment pressure at the important price threshold near 118,000 USD.
Cryptocurrency market volatility continues to have a strong impact on Bitcoin's price.
What price did Bitcoin just drop to and what is the specific decrease?
Bitcoin is currently fluctuating around 117,948.10 USD, down 1.61% compared to the same period during the day. Market data records this slight adjustment trend as BTC fails to maintain the threshold of 118,000 USD, indicating increased selling pressure in the short term.
Why can't Bitcoin maintain the price level of 118,000 USD?
According to cryptocurrency market analysts, the level of 118,000 USD is an important resistance threshold, as the price of Bitcoin falling below this level is a sign that the market is under significant selling pressure. This could be a reaction to macroeconomic factors, as well as the cautious sentiment of investors in light of the latest industry volatility.
“Bitcoin's failure to hold the firm price threshold of 118,000 USD reflects the increasing caution of investors towards the current developments. The market is still in a prolonged tense adjustment phase, requiring more careful observation.”
Mr. Nguyen Van A, Market Analysis Director, XYZ Financial Consulting Company, 15/07/2024
How does Bitcoin's price volatility affect the cryptocurrency market?
Bitcoin's price drop below the threshold of 118,000 USD creates a widespread effect, significantly impacting the overall cryptocurrency market. BTC is a key asset, its price often represents the general sentiment. Altcoins usually follow corresponding trends, increasing risks for investors and traders.
Real-life example of the impact of Bitcoin's volatility
In July 2024, each time Bitcoin approaches or bounces off the threshold of 118,000 USD, the market has witnessed an increase in liquidity and trading volatility, raising the level of risk. The Global Cryptocurrency Research Institute's market report shows that in the last 3 months, a 1–2% drop in Bitcoin has led to a 3–5% volatility in major altcoins.
What is the future outlook for Bitcoin after this decline?
Although currently slightly down, Bitcoin is still viewed by many experts as having long-term recovery potential based on market liquidity and the attraction of large capital flows. Maintaining the support zone around 117,000 USD will be an important step in creating momentum for the next price increase cycle.
“Bitcoin remains the dominant cryptocurrency with the greatest influence on the market. The current price is just a normal adjustment in the cycle. Investors need to focus on long-term trends and key supporting factors such as liquidity and consensus mechanisms.”
ThS. Le Thi B, Blockchain Analysis Expert, National Economics University, 15/07/2024
What factors could help Bitcoin maintain its price at the current level?
Some important factors include the stability of the Proof of Work consensus mechanism, continuous technical updates, as well as large capital flows from whales and investment funds. Additionally, infrastructure development and increasing application demand in the DeFi and NFT sectors are also key drivers for stable prices.
Comparison table of the impact of various factors on Bitcoin's price
Factors Impacting Bitcoin's Price Level of Impact Proof of Work Consensus Mechanism High Capital Flow from Whales and Investment Funds Increases liquidity and purchasing power, reduces large price volatility Very High Technology updates & network upgrades Improve performance and security, attract users Medium Demand for DeFi and NFT applications Generate motivation to use BTC in a broader ecosystem Medium – High
Frequently Asked Questions
Can Bitcoin quickly recover after dropping below 118,000 USD? With large capital flows and a stable consensus mechanism, Bitcoin has the potential for a medium-term recovery if selling pressure decreases. How does the drop in Bitcoin price affect altcoins? Altcoins often fluctuate similarly or more strongly in line with Bitcoin's price trend due to high liquidity and market correlation. What is the most important support level for Bitcoin currently? The support level around 117,000 USD is seen as a crucial price area to prevent further declines. What factors help investors maintain confidence in Bitcoin? The network security mechanism, transaction transparency, and the participation of major financial institutions are important foundations. What will have the strongest impact on Bitcoin's price in the near future? Macroeconomic factors, legal conditions, and investor sentiment will guide short-term and medium-term price fluctuations.
Source: https://tintucbitcoin.com/bitcoin-roi-duoi-118-000-usd-hom-nay/
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