Bitcoin continues to hover around $110,000 but has failed to breach this psychological level. This has led to a price correction, and now the focus is on the nearest support and resistance levels.
Current Situation with Bitcoin
Bitcoin approached the $110,000 level but failed to break through, prompting short-term traders to take profits. As a result, the price has fallen to approximately $108,000. According to Daan Crypto Trades, a close above $110,000 could favor Bitcoin, but a drop below $108,000 may trigger a deeper correction.
Short-term Forecasts and Analysis
Analyst Rekt Capital warns that the bull market momentum could weaken, potentially mirroring the trends seen in 2020. Considering the current support levels, a bounce back for Bitcoin could stimulate interest in altcoins.
Impact of Events on the Crypto Market
Expectations regarding the legislative incentives from former President Trump are seen as a catalyst for potential growth above previous highs. Speculation regarding the national debt forecast of $40 trillion by 2025 could also play a significant role in Bitcoin's price movements.
At this point, Bitcoin is facing significant resistance near the $110,000 mark, and its future behavior will depend on how the market reacts to key levels. Interest in Bitcoin and its influence on altcoin prices remains high.
