Bitcoin is facing the possibility of a significant price drop as geopolitical events affect its price stability.
Bitcoin Price Drop
Amid rising geopolitical tensions in the Middle East, Bitcoin (BTC) has lost more than 5% of its value over the past 24 hours, breaching the $60,000 support level before starting to move downwards again. Market anxieties have led to an overall loss in the crypto market capitalization by 7.2% over the past two days.
Market Analysis and Forecasts
Some traders believe that the worst is yet to come. Popular trader Roman warned of a strong downtrend, noting, 'Volume going up with price going down usually signifies a strong downtrend.' Trader and analyst Toni Ghinea expressed concerns that Bitcoin may not only breach $60,000 but could also hit $54,000, predicting a bull trap.
Crypto Market Reaction
QCP Capital noted that cryptocurrencies were hit harder than oil and equities, and further escalation could push Bitcoin lower to $55,000. However, crypto trader, analyst, and entrepreneur Michaël van de Poppe remains optimistic about the long-term outlook, noting that the BTC price drop has reduced order book liquidity.
The Bitcoin market continues to be under pressure, but analysts remain optimistic about long-term prospects despite current geopolitical tensions.
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