Recent data indicates that Bitcoin (BTC) has seen a decline, currently priced at $96,500. While minor corrections are typical during attempts to reach new highs, further drops could present significant challenges for cryptocurrency traders. Experts are assessing the implications of this downturn on Bitcoin’s future movements.
What Is the Target for Bitcoin’s Decline?
Market experts have identified a bearish signal reflected in the divergence of the Relative Strength Index (RSI). The previously held threshold of $97,138 has been breached for three consecutive days, raising concerns that sustained closures below this level could lead to unfavorable market conditions. Maintaining the current level as a lower wick is crucial to avert further declines in the near term.
How Might Altcoins Be Affected?
A liquidation map shared by Kyledoops suggests Bitcoin could fall to $95,000, potentially wiping out $3.4 billion in long positions. A continuation of this trend may incite panic selling across altcoin markets. Short-term traders may already be feeling the pressure, especially if Ethereum dips below $3,100, impacting altcoin performance.
Key Takeaways:
- Bitcoin’s current price trend shows a vulnerability to further declines.
- Market sentiment could result in panic selling in altcoins if Bitcoin continues to drop.
- Long-term observers maintain a cautiously optimistic view for December based on historical performance.
Despite these short-term fluctuations, the medium-term outlook for Bitcoin remains hopeful. Historical data reveals that November has been favorable for BTC in previous years, which may bode well for December’s performance, especially during halving years. However, concerns persist about a deeper correction, with some analysts suggesting that testing previous all-time highs could provide critical support levels for Bitcoin.