Bitcoin experienced a drop over the weekend, reaching $80,000, which caused concern in the market. Bearish sentiments among investors are growing amid political changes in the US.
Bitcoin Decline and Market Reaction
Bitcoin fell to $80,000 shortly after 7:00 p.m. ET on Sunday, recording a 7% decline in the previous 24 hours. At the time of writing, the largest cryptocurrency in the world was trading at $81,641, showing a very small rebound from that low point.
Bitcoin Technical Analysis
On Sunday, BTC price dropped $6000, indicating larger consolidation on the 4-hour chart. Near $86,000, Bitcoin encounters resistance, while $81,000 serves as support. Big red candles represent long-term selling, while small green spikes in volume indicate buying attempts that didn’t last. Low trend strength indicated by an average directional index (ADX) of 25 indicates that volatility is high and the bearish bias is still present.
Possible Future Scenarios
If bitcoin does not break higher, traders may seek short entries near resistance. On the other hand, if the $81,000-$82,000 zone sees significant buy volume, potential long positions may emerge.
The recent bitcoin drop reflects instability and the impact of external economic and political factors on the cryptocurrency market. The upcoming days will reveal how the situation develops, with potential swings in both directions.
