The cryptocurrency market witnessed a sharp decline, with Bitcoin (BTC) dropping to $94,835, down nearly 2% in the last 24 hours. Altcoins have also suffered, amplifying the bearish sentiment. What caused this sudden downturn?
Key Reasons for the Decline
Economic Data Shockwaves
The release of U.S. economic data, including higher-than-expected JOLTS job openings at 8.10 million and robust ISM Services PMI of 54.1, has rattled risk markets.
These indicators suggest economic strength and imply that the Federal Reserve may slow the pace of rate cuts, maintaining a hawkish stance. This outlook is unfavorable for high-risk assets like cryptocurrencies.
Liquidations in the Crypto Market
Within 24 hours, $331 million worth of long positions were liquidated, with 131,979 traders affected. Ethereum (ETH) also slipped below $3,500, reflecting broader market distress.
Bearish Technical Patterns
Bitcoin broke below its upward channel, breaching the critical support at $97,204. The move has shifted momentum to the downside, with traders eyeing the $92,500 level as a potential demand zone.
What’s Next for Bitcoin?
Support and Resistance Levels
Immediate support lies at $92,500, followed by a stronger zone at $91,947. On the upside, resistance is seen at $96,080, with additional hurdles at $98,856.
Market Sentiment
The RSI at 34.76 indicates oversold conditions, raising the possibility of a short-term rebound. However, sustained recovery depends on Bitcoin reclaiming $97,204 and breaking above resistance.
Long-Term Outlook
Despite near-term headwinds, Bitcoin’s fundamentals, including a $1.87 trillion market cap and limited supply of 21 million coins, remain strong. Analysts suggest monitoring demand levels near $92,000 for potential recovery.
Key Takeaways:
Bitcoin broke below critical support at $97,204, triggering bearish momentum.
Economic data suggests fewer Fed rate cuts, weighing on high-risk assets.
A bounce near $92,000 could form a double-bottom pattern, signaling potential recovery.
Investors are advised to remain cautious and watch these critical levels closely.
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The post Why Did Bitcoin Suddenly Crash? Key Factors Behind the BTC Plunge appeared first on Cryptonews.
