On May 12, Bitcoin unexpectedly fell below $102,400, despite a favorable situation in traditional markets. Analysts suggest this decline was due to profit-taking actions.
Technical Correction in a Macroeconomic Context
On May 12, Bitcoin experienced a sharp drop, declining from an intraday peak of $105,819 to a low of $102,388, despite the absence of obvious negative macroeconomic factors. This decline occurred against the backdrop of a positive response in traditional markets to a US-China trade deal.
Bullish Fundamentals Still in Place
Despite the correction, strong fundamental factors remain. For instance, MicroStrategy's CEO Michael Saylor announced a massive purchase of 13,390 BTC, increasing the company's reserve to 568,840 BTC. Additionally, positive flows into Bitcoin ETFs indicate enduring institutional interest.
Reasons for the Decline and Future Outlook
Signs of selling and profit-taking suggest that the Bitcoin downturn is primarily linked to technical and psychological factors, rather than deteriorating fundamentals. Market participants are exercising caution ahead of the Consumer Price Index (CPI) release.
In conclusion, the Bitcoin drop on May 12 can be viewed as a technical correction that retains some positive signs for future growth, despite short-term fluctuations.
