What will happen after bitcoin fails to break through the $0.1 million mark?
Bitcoin: (with channel chart) $Bitcoin (BTC.CC)$ Recent price fluctuations indicate the difficulties in breaking through the $0.1 million mark. Last week, the digital currency briefly surged to $99,800 during Black Friday, but then fell back to $96,000. This failed breakthrough has made the market sentiment even more tense. Many analysts have begun to question the upside potential of bitcoin, believing that in the current situation, it may face a larger adjustment in the future.
Recent on-chain data shows that the US government transferred some of the confiscated bitcoins from the dark web black market 'Silk Road' case to Coinbase Prime in the early hours of today (3rd), with a quantity of up to 19,800 coins, valued at nearly $2 billion. The exposure of this news has led to various speculations in the market, with investors fearing that these bitcoins will be sold off, further exacerbating the oversupply of dollars.
From historical data, when bitcoin approaches significant psychological levels, it often experiences drastic fluctuations. For example, in 2021, bitcoin encountered resistance near $64,000, followed by a significant pullback that eventually dropped the price to below $30,000. This trend seems likely to repeat in the current situation, especially after failing to break through $0.1 million, triggering panic selling in the market.
Furthermore, recent trade volume has significantly decreased, indicating a decrease in investor activity. Bitcoin's trading volume has decreased by about 30% in the past few weeks, possibly due to investor concerns about future trends and market uncertainty. When trading volume decreases, price stability is also affected, further increasing the risk of price corrections.
Overall, with the failed breakthrough of bitcoin at $0.1 million and the news of the US government transferring bitcoins, the market sentiment is becoming increasingly gloomy. Faced with potential adjustment risks, investors remain cautious about the future market trends, as once panic selling occurs, bitcoin prices may experience deeper corrections.
The Trader Funds trade
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
