The crypto market is currently facing a downturn, with major altcoins like ETH, SOL, and XRP losing 3-10% in value largely due to Bitcoin's decline.
Key Factors of Price Drop
The decline in Bitcoin's price, which has dipped below $105,000, is driving the current downturn in the market. The price of Bitcoin is being influenced by liquidity zones that traders are analyzing to understand the further direction of the market.
Expert Analysis
Analyst Michaël van de Poppe pointed out that Bitcoin has begun to take liquidity from certain areas on the chart, suggesting possible scenarios. He states that the next key area to watch is around $105,500 and if BTC drops below this level, there could be further downside pressure. In his words: *"Liquidity starts to be taken from those regions, through which it’s very likely that we’ll go down some more. However, this is the zone where you want to become interested, as this is where the liquidity comes in for the actual reversal.”* Another analyst, known as Mr. Wall Street, also posits that Bitcoin may dip further, possibly to the $90,000 range, before beginning another upward movement.
Crypto Market and Bitcoin's Future
The situation in the market remains under close watch. Once Bitcoin stabilizes or begins to rise, the rest of the crypto market, including altcoins like XRP, SOL, and ETH, may also show improvement. Traders are focusing on Bitcoin's next move and its ability to maintain key support just above $100,000.
The current decline in the crypto market is linked to Bitcoin's price drop. The subsequent movements of BTC will significantly impact the prices of altcoins and shape the overall market direction.
