Why is Bitcoin Price Down Today?

Bitcoin is currently down by more than two percent, trading slightly below the $90k mark. It is currently experiencing a period of sideways movement, which, while not exciting, could present opportunities for traders. Although Bitcoin’s price has been relatively stable lately, the bigger question on everyone’s mind is how much lower it might go in the short term, and how we can take advantage of these dips.

Why did the sentiment turn red?

The recent dip in Bitcoin’s price can likely be attributed to a combination of factors. One major contributor seems to be the continued selling pressure from Bitcoin miners. This selling has weighed heavily on broader market sentiment, particularly as miners offload their holdings in large quantities.

Adding to the pressure, a Bitcoin miner from the early “Satoshi era” moved 2,000 BTC that had been untouched since 2010. According to CryptoQuant’s Head of Research, Julio Moreno, these coins had never been moved until now, and some of them have already ended up on exchanges, which could be adding to the selling pressure.

Another factor contributing to the price dip is the Crypto Fear and Greed Index, which has recently shifted to a neutral position for the first time since last year. This neutral sentiment may signal uncertainty among traders, further influencing Bitcoin’s price movement.

Key Levels to Watch

In the short term, Bitcoin’s price is approaching important support at $85,000. If it holds above this level, there’s still potential for another upward movement. However, if Bitcoin drops below $85,000, it could signal a deeper pullback, potentially targeting Fibonacci support areas lower down. A 10-15% pullback wouldn’t necessarily be bearish; it could simply be a cooldown phase for the overheated market.

Potential Short-Term Scenarios

Bitcoin’s recent price action suggests indecision, with a three-wave move that isn’t clearly bullish or bearish. We might be seeing a corrective wave in the short term, but the market is still in a range. If Bitcoin breaks above recent highs, it could start another rally towards $95,000 or even $97,000. However, if it falls below key support levels, a deeper correction could unfold.