Bitcoin experienced over a 2% drop from the $120,000 mark due to selling pressure and declining market liquidity. Analysts expect further declines while signs of volatility emerge in the altcoin market.
Bitcoin and Market Liquidity
The cryptocurrency Bitcoin fell over 2% following the Wall Street opening. The price fluctuated around $120,000 but soon experienced selling pressure that led to its decrease. Data indicates over $500 million in liquidations in the crypto market over the past 24 hours.
Price Forecasts and Potential Drop Levels
Analysts suggest that the next significant support level for Bitcoin could be $113,000, based on Fibonacci analysis. Traders emphasize that the current price movement may represent another 'liquidity grab' followed by a potential drop to lower range limits.
Risks in the Altcoin Market
Blockchain analytics firm Glassnode warns of risks in the altcoin market. Elevated levels of open interest in derivatives markets threaten the stability of price increases. Studies show that high leverage usage can lead to sharp volatility.
In the current conditions, the Bitcoin and altcoin markets are subject to volatility, creating potential situations for both short-term losses and possible recoveries. Traders are advised to monitor trends and liquidity levels closely.
