Bitcoin's Decline Continues: Predictions for Further Decline
Bitcoin experienced significant losses, falling from over $84,000 to below $79,000 in a matter of hours. The cryptocurrency then recovered slightly to just over $80,000. The cryptocurrency market experienced broader selling, with Ether and XRP also seeing declines. Traders anticipate further declines with open interest put options at a strike price of $70,000. If Bitcoin reaches that level, it would represent a 35% drop from the January high of $109,000. Analyst Katie Stockton noted the possibility of testing secondary support near $73,800, while George Pavel from NAGA predicted a potential drop to $70,000 after breaking the $90,000 resistance level. Bitcoin's market capitalization decreased by 7% to $1.58 trillion. This sell-off was driven by a broader market risk-off movement, an ETF outflow of $1.1 billion, increased volatility from a $1.5 billion hack at ByBit, and macroeconomic uncertainty. The continuation of this trend depends on market dynamics or potential catalysts that restore investor confidence.
