Why Is The Price Of Bitcoin Falling Today?
Due to the recent slump in the price of Bitcoin, several analysts of the cryptocurrency space have voiced a lot of concerns. With that, a lot of selling pressure has built up, attempting to bring the Bitcoin price down. Baruch College suggests speculation as well as increased volatility in the market could be a key factor to the recent slump in general.
Further Key Factors Affecting The Price Of Bitcoin
High Selling Pressure
With the Bitcoin price increasing, sellers turned to traders and started selling off their 33,000 BTC on various exchanges making their price worth over 3.23 billion dollars. This was a strategy meant for traders that were trying to reach their monetary peak.
Expectations And The Market Sentiment
Even after the price of Bitcoin rapidly increased over the Christmas period to $99,800, there was still expectations of a boost up to $110,000. Such expectations even during rapid increases tend to affect trade sentiment causing the market to worsen. Based on trends, Bitcoin usually starts seeing massive price increases when the market hops on not expecting anything during that time.
Effect Of Expired Options
A lot of contracts, pretty close to 18 billion are to expire on the Deribit exchange and this sets a lot of uncertainty in the market.
And with the amount of volatility making predictions almost impossible due to confirmation bias, it was found GPU’s put-call ratio stood at 0.69 and Bitcoin priced at $85,000 would be the max resistance.
Bitcoin Price Trends Forecast
Let’s have an expert insight into what the potential price moves on Bitcoin may look like:
- According to Justin Bennett, the price might decline to the bracket of $81,000 to $85,000 through technical analysis.
- According to Peter Brandt, Bitcoin would see a decline of about $2,000 off its exchange rate reaching $80,000.
- While trading low at a price of $95,000 to $70,000, as Tone Vays notes,” it could correct towards the price lower to it, $75,000.
The 2023 Bitcoin Market Amidst Turmoil
Despite the 2023 rocking market, institutional investor interest seemed to remain sky high for Bitcoin. Companies like MicroStrategy continued carbombing their market with BTC purchases however, this strategy gave rise to market speculation. KULR and various other companies have also expanding towards Bitcoin investments.
2023 Ethereum Market Trends
The coming up expiration of Ethereum options, with an estimated valuation of $3.79 billion, also shows the hope traders have for such investments. The maximum pain price could serve as an important level to operate around. The $3,000 gives the potential a put call ratio of 0.41.
Final Words
Though Bitcoin prices are inclined to remain low due to negative trends, the scenario is still very dynamic as projected by the sentiments of both the market and the investors. The trillions worth options is definitely going to make the market swing like crazy and everyone seems to be on their toes. Due to the heightened volatility and market corrections that many expect traders are to remain careful,
