Do you know the reasons behind the decline of BTC?
How many dips will it take if it continues?
How long will it take to hit 75,000 again?
Bitcoin is in a downward trend that not many people expected. One of Binance’s top traders shed light on the trend, arguing that it is related to market behavior. When Bitcoin prices rise, many traders move away from their usual locations for buying and selling.
Instead, they chase trending coins, which often change on a daily basis, by borrowing money to bet on these coins (particularly the highly volatile meme coins). What’s Behind Bitcoin’s Price Drop The idea is that when Bitcoin and similar big-name cryptocurrencies rise in price, people get excited about making quick profits.
As a result, they rush to invest in smaller, more volatile cryptocurrencies like memecoins, largely because many expect bigger and faster returns than something with slow and steady growth like Bitcoin.
But this behavior can cause problems. As more people buy these memecoins with leverage (using borrowed money to increase their purchasing power), this means less activity on the main Bitcoin market. Without strong buying interest to continue pushing the price higher, Bitcoin will begin to lose momentum, which could cause the price to fall.
Bitcoin price analysis
Bitcoin is facing a tough time right now. The chart shows that its price is lower than where many traders have been trading recently, meaning there is less confidence that the price will recover soon.
We can see there is some safety net around $56,260; this is the 50-day moving average and usually acts as a floor below which price does not want to fall below. If it does, the next level to watch is near $51,802, where the 100-day moving average lies.
As for the upper limit that Bitcoin needs to break to start climbing again, it's around $64,000. If Bitcoin can break above this point, we may see it begin to rise towards recent highs again. However, if it falls below the averages we discussed, it could be a sign that prices may continue to fall, or at least remain low for a while.
