bullish

Major

Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s price dropped significantly after crossing the $100,000 mark, causing a shift in market sentiment.</li> 
 <li>Traders are overleveraged at $96,957 and $99,813, which could lead to major liquidations if the price shifts.</li> 
</ul> 
<p> Bitcoin recently experienced a significant 5.47% price decline in a minute, shortly after crossing the $100,000 mark for the first time. This abrupt price decline has led to a change in the overall market sentiment, as traders have liquidated nearly a billion worth of long and short positions.</p> 
<h2 id="reason-for-btc-s-decline">Reason for BTC’s Decline</h2> 
<p>The cause of this significant price drop is yet to be determined. However, data from the on-chain analytics firm Coinglass suggests that a substantial inflow into the exchanges might have contributed to this price decline. It was reported that exchanges have seen a significant $732.5 million of <a href="https://coineagle.com/price/bitcoin/">Bitcoin (BTC)</a> outflow. In the cryptocurrency context, “outflow” indicates the movement of assets from wallets to exchanges, often seen as a sign of selling pressure and a potential price decline.</p> 
<p>The recent price drop has created fear among traders and investors, raising concerns about whether the price will drop further or if the market will rebound.</p> 
<h2 id="bitcoin-technical-analysis">Bitcoin Technical Analysis</h2> 
<p>According to technical analysis, BTC is consolidating in a tight range between $92,000 and $99,100. However, a recent breakout from this zone seems to have been a bull trap, as BTC failed to sustain its position above the range and has fallen back within it.</p> 
<p>If BTC breaks out above the upper boundary of the range and closes a daily candle above the $99,700 level, it is likely to cross the $100,000 mark again. On the other hand, if BTC breaks below the range and closes a daily candle under the $91,500 level, it could drop to the $86,000 level.</p> 
<p>BTC’s Relative Strength Index (RSI) currently stands at 62, just below the overbought territory, indicating that the asset still has room to rise in the coming days.</p> 
<h2 id="major-liquidation-levels">Major Liquidation Levels</h2> 
<p>The major liquidation levels currently stand at $96,957 on the lower side and $99,813 on the upper side, with traders overleveraged at these points. If sentiment shifts towards bullish momentum and the price rises to the $99,813 level, nearly $938 million worth of short positions could be liquidated. Conversely, if sentiment turns bearish and the price drops to $96,957, approximately $364 million worth of long positions could be liquidated.</p> 
<p>The liquidation data suggests that bearish sentiment is strongly dominating the asset, as many believe the BTC price will not surpass the $99,813 level.</p> 
<p>At press time, BTC was trading near $97,970 and has registered a price decline of 4.10% in the past 24 hours. During the same period, its trading volume increased by 4%, indicating a modest rise in investor and trader participation compared to the previous day.</p>

Understanding Today’s Bitcoin Dip: Critical Levels to Guide Your Next Action

Table of Contents

CoinEagle.com

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