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Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Nov 26, 2024 08:21 UTC
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Why is Bitcoin Going Down and What’s Next?
Bitcoin is currently facing a short-term correction due to increased scam activity and market manipulation.
Despite the correction, long-term bullish sentiment for Bitcoin remains strong.
While short-term volatility is expected, investors should focus on the long-term potential of Bitcoin.
Bitcoin is currently testing support levels below the critical $95K mark, down over four percent in the last 24 hours. This comes right after Michael Saylor revealed that MicroStrategy had bought an additional $5.4 billion worth of Bitcoin, bringing their total holdings to around 386,500 Bitcoins, valued at nearly $22 billion. Despite the market’s long-term optimism, recent events are throwing cold water on Bitcoin’s bullish momentum.
So, what’s really causing this unexpected dip? The answer might surprise you.
Why is Bitcoin Dropping? Expert Explains
In their latest analysis, Altcoin Daily dives into why Bitcoin is seeing a sharp drop despite nearing a significant 100K milestone. The crypto market is facing turmoil, and the reasons boil down to scams, hype-driven trading, and frothy market behavior.
One of the main factors hurting the market is the rise in meme coin scams and rug pulls. Influencers are launching pump-and-dump schemes, while live-streamers openly talk about manipulating their followers. These actions are leading to a loss of trust in the market. For example, a TikTok influencer lost $4,000 and later scammed his followers out of $112,000, showing how unethical behavior is eroding confidence in the space.
This loss of trust is causing market corrections as excitement and speculative hype give way to a greater demand for quality and transparency.
Is the Market Due for a Correction?
Bitcoin’s current drop is part of a larger cleanup of the market. Support levels are currently seen between $90,000 and $92,000, but if conditions worsen, Bitcoin could drop further to the $70,000–$72,000 range. Even with a potential pullback, the overall bullish trend for Bitcoin remains strong.
The analyst reminds viewers that price dips are normal in any bull market.
Institutional Interest in Bitcoin Is Strong
Despite the market chaos, institutional interest in Bitcoin remains strong. Anthony Pompliano’s remarks about Bitcoin being a “bottom-up adoption story” stand out, with individuals leading the charge and institutions following. As Bitcoin approaches a $2 trillion market cap, large investors, such as pension funds and central banks, are starting to pay attention.
There’s also a lot of liquidity around the $100,000 mark, particularly around $99,700. This could cause a short squeeze if Bitcoin breaks above this level, potentially pushing prices higher. However, Bitcoin is likely to face resistance at $100,000 in the short term, which may lead to more consolidation before any breakout.
In the world of crypto, volatility is the name of the game and you must be ready to play it!
FAQs
In 2030, the price of 1 Bitcoin could reach a height of $347,783.
Projecting a 10-year growth in a volatile asset like Bitcoin seems a far-stretched notion. The BTC price is expected to cross $300,000 by 2030. With global adoption, Bitcoin could be worth a million dollars.
Yes 
No 
