Bitcoin ($BTC ) has taken a significant hit, falling over 3% in the last 24 hours to trade around $112,792. This sharp decline comes after the cryptocurrency quickly pulled back from a 24-hour high of $116,938.
The sudden drop reflects increased selling pressure as traders react to the price dip, causing a spike in trading volumes. Technical indicators show a clear downward trend, with strong market volatility noted by the Bollinger Bands and the Relative Strength Index (RSI) nearing "oversold" territory.
Several factors are likely driving the price drop:
* Profit-taking by investors after the recent rally.
* Increased market volatility linked to broader economic uncertainties.
* Potential whale activity that may have triggered cascading liquidations.
Despite the short-term pullback, Bitcoin's long-term performance remains strong, with a yearly gain of 85%. For traders, the key levels to watch are the immediate support zone between $112,500 and $111,800. If $BTC fails to reclaim the resistance levels of $114,500 to $116,000, it could trigger a deeper correction. However, a move back above $115K would shift momentum back in favor of the bulls.
