Why does the Bitcoin price fall? Bitcoin (BTC) began with a harsh decline in the week with the influence of global trade wars. The US brought new tariffs to China, Mexico and Canada increased uncertainty in the markets. BTC declined to $ 91.231 and saw the lowest level of the last 20 days. So, can Bitcoin recover from here? Here are critical levels and possible scenarios.
Why is Bitcoin falling? Critical Support for Bitcoin falling below $ 91,000
Bitcoin’s decline to $ 91,200, led to panic among investors. In the last 24 hours, the liquidation of $ 1.8 billion has taken place, which shows that large investors have left the market.
Inflation concerns and interest rate hike expectations in the US cause investors to get away from risky assets. Many investors sell Bitcoin and their shares and turn to safer assets such as bonds. This led to the depreciation of the BTC in the last three days.
Levels to be followed in Bitcoin Price
According to technical analysis, critical support levels for Bitcoin are as follows:
- 90,500 dollars:According to Coings data, this level has a long position of $ 2.12 billion. Investors will try to keep BTC at this level.
- 93,000 dollars:Long position of $ 1 billion is concentrated at this level.
- 94,330 dollars:BTC may encounter a strong buyer support here.
Protection of these levels can allow Bitcoin to turn to $ 100,000 again. However, if the uncertainties in the market persist, BTC may experience a deeper correction.
Why is Bitcoin falling? Can the price increase to $ 108,000?
Some technical indicators give recovery signals for Bitcoin. In particular, the BTC price movement constitutes the “Double Dip” formation. This model usually points to the beginning of an ascension movement.
If BTC maintains $ 90,500 support, the following levels can be targeted:
- 96.150 dollars:The first strong resistance level.
- 102,000 – 105,000 dollars:The region that needs to be overcome for the continuation of the rise.
- 108,000 dollars:The critical level targeted by the bulls.
According to the Bollinger Bands indicator, Bitcoin may face hard resistance at $ 105,800 and $ 108,000. However, if the BTC rises above these levels, the upward trend may start again.
Will Bitcoin determine the direction?
Bitcoin lost 11 %in the last three days and made investors anxious. However, technical indicators and support levels show the possibility of BTC’s recovery from here. If macroeconomic conditions heal and investor confidence comes back, Bitcoin may rise to $ 108,000.
