Bitcoin's price has now dropped below $118,000, trading around the level of $117,966.
The cryptocurrency market recorded slight volatility as Bitcoin fell by 0.80% in just one day, pushing the price close to the important support level of $118,000.
MAIN CONTENT
Bitcoin dropped below $118,000, trading at $117,966/coin.
This trading session reflects short-term volatility in the cryptocurrency market.
What does Bitcoin dropping below $118,000 signify?
Accurate information from the OKX exchange shows that Bitcoin has just broken the $118,000 mark, down to $117,966/coin.
The 0.80% decrease in a day, while not large, creates negative psychological pressure for investors. Bitcoin's price near this level is often viewed as an important support area during corrections.
According to financial expert Nguyen Thanh Binh (2024), Bitcoin dropping below technical levels like $118,000 could signal a short-term correction phase or confirm distribution signals from whales in the market.
Bitcoin's price is highly volatile, breaking psychological support levels like $118,000 needs to be monitored carefully to assess the next trend.
Nguyen Thanh Binh, Cryptocurrency Market Analyst, 2024
What are the causes and effects of Bitcoin's price drop?
The main reasons stem from profit-taking pressure and technical adjustments after a prolonged strong increase. This phenomenon is common when the market goes through stressful bull market phases.
Furthermore, macro information and volatility in traditional financial markets cause primary capital flows to tend to exit cryptocurrencies, exerting downward pressure.
Dropping below $118,000 could trigger stop-loss orders from day traders, increasing selling pressure in the short term and leading to a deeper decline if there is not enough buying strength to support.
What is the next trend forecast for Bitcoin based on current data?
Bitcoin’s price may continue to fluctuate in the range of $117,000 – $120,000 if no significant signals arise from technical indicators or new macroeconomic information.
Market analyst Bui Quoc Trung stated that the current correction is healthy, allowing the market to accumulate new strength for the next upward phases.
Bitcoin is in an accumulation phase, these price drops help create a solid foundation for a long-term upward trend.
Bui Quoc Trung, Cryptocurrency Market Analyst, 2024
If the $117,000 support is maintained, the likelihood of an early recovery is high. Conversely, a deeper decline scenario may emerge if there is strong negative volatility in global financial markets.
What factors affect Bitcoin's price volatility in the near future?
Market liquidity, whale cash flow volatility, and global macroeconomic events are significant factors impacting Bitcoin's price.
Moreover, monetary policy meetings or changes in regulatory frameworks regarding cryptocurrencies also play an essential role in guiding price trends.
Monitoring trading techniques and on-chain analysis indicates that future volatility may increase depending on investor sentiment and large capital flows in the market.
Frequently Asked Questions
Does Bitcoin dropping below $118,000 indicate a long-term downward trend?
Not necessarily, this could just be a short-term correction in a continuing upward trend; it is essential to combine technical analysis and on-chain data for an accurate assessment.
How does Bitcoin's drop affect altcoins?
Altcoins often fluctuate according to Bitcoin's trends, so Bitcoin's price decrease could exert downward pressure on altcoins in the short term.
What should investors do when Bitcoin's price slightly drops?
It is advisable to maintain a reasonable risk management strategy, avoid panic selling, closely monitor significant support levels, and prepare flexible investment scenarios.
Is Bitcoin's market volatility related to macroeconomic factors?
Yes, macroeconomic information such as interest rates and monetary policies significantly influences investment flows into cryptocurrencies in general.
What is the nearest support point for Bitcoin currently?
The area around $117,000 is considered an important support level to prevent further deep declines.
Source: https://tintucbitcoin.com/bitcoin-rot-duoi-118-000-usd/
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