Why is Bitcoin Going Down?

Bitcoin is currently testing levels below the crucial $95k mark and is down by more than four percent in the last 24 hours. This comes after a recent announcement from Michael Saylor revealing that MicroStrategy purchased another $5.4 billion worth of Bitcoin. This brings their total holdings to around 386,500 Bitcoins, valued at nearly $22 billion. While the market is optimistic about Bitcoin’s rise, certain rug-pull events are stopping the bullish momentum. 

So what’s behind this short-term correction, let’s find out. 

In their latest analysis, Altcoin Daily dives into why Bitcoin is seeing a sharp drop despite nearing a significant 100K milestone. The crypto market is facing turmoil, and the reasons boil down to scams, hype-driven trading, and frothy market behavior.

The Chaos in the Market

Altcoin Daily highlights a rise in meme coin scams and rug pulls. From influencers launching pump-and-dump schemes to live-streamers openly discussing how to manipulate their followers, trust in the market is taking a hit. One example is a TikTok influencer who lost $4,000 and later scammed his fans out of $112,000, showcasing the unethical activities eroding confidence in the space.

This behavior is leading to market corrections as the excitement and speculative hype are replaced with a demand for quality and transparency.

Bitcoin’s Support Levels and Outlook

This means that Bitcoin’s correction is part of a broader market cleanup. Current support levels are seen at $90,000-$92,000, with a deeper pullback to $70,000-$72,000 possible if market conditions worsen. Even if BTC does see a pullback, the overall bullish trend remains intact for the long run. However, the analyst reassures viewers that dips are a normal part of bull markets. 

Big Players Are Still Interested

Despite the chaos, institutional interest in Bitcoin remains strong. The analyst references Anthony Pompliano’s remarks about Bitcoin being a bottom-up adoption story, with individuals leading the way before institutions and governments follow. With Bitcoin nearing the $2 trillion market cap, large capital pools like pension funds and central banks are starting to take notice.

Moreover, there’s significant liquidity around the $100,000 mark, especially around $99,700. This could trigger a short squeeze if Bitcoin breaks above this level, potentially pushing prices higher. However, in the short term, Bitcoin is likely to face resistance at $100,000, leading to continued consolidation before any potential breakout.

It’s time to make a wise investment decision as Bitcoin may see some dips in the coming months before it hits the $100K mark and it could be your only chance to to enter the market. Are you ready?


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