Bitcoin has seen a significant price decline, losing 8% of its value in the last 24 hours. This article explores key support levels and potential risks.
Bitcoin Price Falls Below Short-Term Cost Basis
Currently, Bitcoin’s price has dipped below the short-term investor cost basis of $92,500. This decline indicates a 4% loss for short-term investors on average. Historically, falling below this level has been associated with increased selling pressure.
Critical Levels for BTC
The strongest demand area for Bitcoin is between $89,000 and $87,000. However, support below this level appears to be weakening. If the price remains below $87,000, there is a strong likelihood of a sharp decline towards the $71,000 to $72,000 range if history repeats.
Opportunities and Risks in the Current Situation
Insufficient demand for Bitcoin at these levels could enable sellers to take control of the market. Should buyers fail to show interest at current prices, the Bitcoin market may face a prolonged downturn. Therefore, it is crucial for the price to rise back above the short-term cost basis.
The movement of Bitcoin's price below key support levels is concerning for investors. In the near term, it is critical to watch market demand and supply dynamics to predict future developments.
