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Bitcoin Drops to $91K – Will It Recover or Fall Further?

Bitcoin has dropped 6.4% in 24 hours, forming a rounding top pattern. This decline triggered panic selling, but long-term holders remain firm. Could BTC recover soon?

Bitcoin Falls to $91K, Triggering Market Panic

Bitcoin’s recent dip to $91,000 caused heavy selling pressure, with over 80,000 BTC (worth $7.5 billion) moving to exchanges. Historically, large inflows signal potential sell-offs, as investors seek liquidity during downturns.

Bitcoin Exchange Deposits. Source: Glassnode

However, this may be short-lived. Such panic selling doesn’t always indicate a long-term bearish trend. Instead, it reflects temporary fear-driven movements.

Long-Term Holders Stay Strong

The Coin Days Destroyed (CDD) metric, which tracks older BTC movement, shows long-term holders (LTHs) have stayed inactive despite the price drop.

Bitcoin CDD. Source: Glassnode

This suggests they are confident in Bitcoin’s recovery. Unlike short-term traders, LTHs tend to hold through volatility, signaling that the current dip might be a temporary setback rather than a prolonged decline.

BTC Price Prediction: Will Bitcoin Bounce Back?

Bitcoin’s rounding top pattern could shift into an inverse cup and handle, which typically precedes a breakout. The current bearish momentum is not overly strong, meaning BTC could still rebound from the $93,625 support level.

Key Price Levels to Watch:

Bullish Scenario: If Bitcoin recovers above $95,668, it could push toward $100,000, restoring investor confidence. A break and hold above $100K could lead to $105,000.

Bearish Scenario: If BTC fails to hold support, it may drop further to $92,005 in the short term.

For a full recovery, Bitcoin needs to flip $100,000 from resistance to support, which would invalidate the bearish trend and confirm a bullish breakout.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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