The Bitcoin price reached a new all-time high of $89,900 this morning around 8 am. Despite the impressive rise, BTC failed to break the psychological resistance level of $90,000. From that point on, a correction began, which has now dropped the price to a current level of $86,000. This represents a decrease of approximately 4.2%.
Short-term correction or first big dip?
The question now on the table: is this a short correction, or the first step in a larger price decline? Many signals indicate that the current correction is temporary. Both institutional and retail investors seem very bullish on Bitcoin.
The optimism among institutional parties is underlined by the impressive inflow of $1.1 billion into Bitcoin ETFs yesterday. These figures show that demand for Bitcoin as an investment remains strong, which could continue to generate upward pressure on the price.
Fear and possible liquidations
However, the current price drop could also be a turning point. Historically, large price increases often cause uncertainty among investors, especially at new all-time highs. Should more investors decide to sell their Bitcoin for fear of further declines, this could lead to a so-called “waterfall of liquidations.” Strong selling pressure could cause the price to fall even further.
Support levels to keep an eye on
In the event of a further decline, the following support levels seem important:
- $84,000: A strong support point where Bitcoin was previously in high demand.
- $80,000: A psychological level that could potentially provide solid support.
- $78,500: An important technical level based on previous price patterns.
If the price finds sufficient support around these levels, a recovery move could be initiated and Bitcoin could once again attempt to break the $90,000 barrier.
What does this mean for the path to $100,000?
While the current correction may make some investors nervous, the bigger picture remains positive. The next big target for Bitcoin is at the psychological level of $100,000. The question now is whether the market has the strength to quickly recover from the current dip, or whether a broader correction is needed before this ambitious goal can be achieved.
The coming days will be crucial in determining the direction of the Bitcoin price. Investors are keeping their eyes on new inflows into Bitcoin ETFs and the market’s reaction to the current support level.
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