Bitcoin Price Dip: Could $100K Be Next?
Bitcoin has fallen below $105,000. We analyze the price charts and derivatives data to explore the possibility of a further drop to $100,000.
Bitcoin Price Falls Below $105,000
Bitcoin's price has dropped below $105,000. This is raising concerns about a bigger price correction.
Chart Analysis
The Bitcoin chart shows some worrying signs:
Lower Highs: Bitcoin has made several lower highs recently.
EMAs: The price is below key moving averages (EMAs).
RSI: The RSI, a momentum indicator, shows weakening bullish momentum.
Fibonacci Retracement: The price has fallen below a key Fibonacci level.
A drop below another support level could lead to a bigger price drop. However, there are some support levels that could slow down the fall.
Derivatives Market Shows Less Optimism
Data from the derivatives market also suggests less confidence in Bitcoin's price:
Open Interest: Open interest (the total number of outstanding Bitcoin futures contracts) is down.
Liquidations: More long positions (bets that the price will go up) have been closed than short positions (bets that the price will go down).
Funding Rate: The funding rate (the cost of borrowing Bitcoin) has fallen. This shows less bullish trading activity.
What Could Happen Next?
Several things could happen:
Further drop: A continued drop could push Bitcoin towards $100,000.
Price bounce: The price could bounce back up from its current support level.
It's important to remember that predicting Bitcoin's price is difficult. This analysis is for informational purposes only and is not financial advice. Always do your own research before making any investment decisions.
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