Bitcoin faced significant resistance between $69,000-$70,000 and started to decline. It has already decreased by 3% from its peak of $69,566. Let's explore the reasons behind this fall.

Bitcoin Chart Analysis

A heavy divergence is visible on the four-hour chart. The price was moving up while the RSI was falling, indicating a lack of buyer support. This led to increased seller activity, causing the price to drop. Bitcoin is currently trading at $67,370, with RSI dropping to 43.65. MACD is also indicating a rise in bearish activity. BTC faces resistance from the $70,000 zone and the trend line formed since July this year.

Whale Activity

As stated in yesterday’s article, whales opened short positions in the $70,000 area. Such zones are prone to price rejection, especially as a previous all-time high. Whale orders clarify the reasons for the drop. The price started to fall from $69,566 due to dense short trades. Currently, bitcoin is supported at $67,500, but there is a chance for another drop as it approaches $68,000. Over 98% of investors are in profit, prompting whales to take profits and accumulate bitcoin at lower prices.

What to Expect

Given the high price volatility, traders are advised to manage risks carefully. Over 64,000 traders lost their funds in the past 24 hours. Just in the last hour, $48.20 million worth of trades were liquidated. This price movement offers opportunities but also high risks. If timing is uncertain, it might be wise to stay away from the market. We could soon see the price break the $70,000 barrier and reach a new all-time high of $72,000. After breaking this point, a new journey will begin for BTC in the coming days.

The Bitcoin price drop is attributed to several factors, including whale activity and technical indicators. The situation remains volatile, requiring careful approach by traders. Despite the decline, there's potential for reaching a new all-time high soon.