[Why did Bitcoin Inscription tokens ORDI and SATS collapse? 】
In January this year, the crypto market witnessed significant declines in digital assets, especially token tokens such as ORDI and SATS. The tokens saw price drops of 34.50% and 50% respectively, mainly affected by Bitcoin (BTC) price fluctuations.
This drop was not only affected by the Bitcoin ETF "sell news" event, but also factors such as falling token fees and a decrease in Bitcoin block size market share. token token prices are closely related to Bitcoin, because for example ORDI involves moving Data is written to the Bitcoin blockchain, creating a unique digital artifact.
On the technical analysis front, there are bearish divergence signals emerging from the price declines in ORDI and SATS. The ORDI/USDT daily chart from December 5, 2023 to January 2, 2024 shows a bearish divergence pattern with price forming higher highs, but RSI forming lower highs, followed by a 45% retracement. SATS price fell over 60% after showing bearish divergence.
Regarding future price action, ORDI shows scope to fall, possibly reaching its $38.5 target in February. This target coincides with the 0.618 Fibonacci retracement level. SATS could then rally towards 0.00000043, but if it falls below the 0.00000036 support, it could collapse to the 0.786 Fibonacci line at 0.0000029.
