The Crypto market is falling today as the Bitcoin price dropped back below $24,000 and is hovering below the crucial support at $23,800 at the moment. The price dropped but still carries the possibility of a rebound. However, the trading volume has to plunge heavily, indicating the bulls remained passive since the early trading hours. In the meantime, the bears also appear to be self-assured of the next bullish wave and chose to maintain a low-key trend.
After yesterday’s powerful green candles, the market participants were extremely bullish on Bitcoin and expected to reach beyond $25,000. Woefully, the bulls got drained that slashed the price lower. It has to be noted that during the previous upswing during the first few days of 2023, the buying volume spiked which lead to a 40% jump in the BTC price.
However, during the past surge, the volume reminds low comparatively which signifies the abnormal growth in the value of BTC.
The buyers had made large efforts previously to elevate the prices, and now that they are less struggling, a sense of deception hovers. Moreover, the US CPI came out to be worse than expected, and the S&P 500 has not displayed any active growth while the crypto market continued to swell at a frantic pace. Additionally, the SEC-Paxos-Binance fiasco, which remains unclear, has not impacted the markets to a large extent.
However, due to the SEC’s ban on Paxos’s BUSD, all the liquidity is flowing back into Bitcoin, altcoins, USDT, etc. Now, if the BTC price manages to gain $25,000, more long positions may be closed, extracting profits. Further, if the BTC price rises beyond $25,200, more confidence in longs may knock in and the prices may keep rising to reach the next liquidity zone of $28K to $32K.
Further, if the crypto market begins with a correction, then the shorts may be active and could drag the price back below $20000.
Source: https://coinpedia.org/price-analysis/crypto-market-analysis-why-bitcoin-price-is-dropping-today/