Why is Bitcoin Down Today? Will BTC Cross $100k?

Bitcoin sent shockwaves to the market as it fell under $95,000 when it was above $98,000 just yesterday. It peaked at almost $99,500, but now it’s dropped back to around $94,427. That’s quite a drop, but is it the end of the road or just a temporary dip? People are still buzzing about what might happen next, so let’s take a closer look at what’s really going on.

What’s Causing This Drop?

Bitcoin reached its high of $99,500, then dropped by about 5%. Now, it’s trading around $94,427. But here’s the thing—trading volume has actually gone up by 60.55%, which means people are still actively buying and selling despite the price drop. Some think it’s just a quick correction before Bitcoin takes another shot at going higher.

Key Levels to Watch

Right now, Bitcoin is testing some important levels. If it can break past the $95,750 resistance, we could see it climb to $96,000 or even $97,350. And who knows? If it really gets going, we could see $98,880, or even push toward $100,000.

But if it can’t make it past the $95,750 mark, things might get tricky. The next support levels are at $93,000, $92,500, and $90,000. If Bitcoin can’t hold those, it could slide down to $88,000.

What Are the Big Investors Doing?

One thing that stands out is what the big investors, or “whales,” are up to. Despite loosing $526 million in liquidations that included over $300 million from long trades, the community holds its positive sentiment. Whales are ready for big movements, they are definetly seeing something other are unaware of,

On the flip side, the market sentiment has cooled off. The Fear & Greed Index is down to 79, compared to last week’s peak of 94 when Bitcoin was nearing $99,000. Plus, the RSI is at 41.70, suggesting Bitcoin’s cooled down a bit after being overheated. It could be the market taking a breather before the next move.

What’s Next for Bitcoin?

Bitcoin’s next steps are still up in the air. If it can break through that $95,750 resistance, we could see a nice bounce. But if it can’t, it might keep sliding down. Either way, there’s a lot happening, and traders are closely watching how things unfold. The price drop might also be a psychological effect towards the upcoming $9.4 billion of Bitcoin Options expiry on Friday.

The next few days are going to be interesting!