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Bitcoin Price Crash To $96,000: How Low Will BTC Go Before The Bottom Is In?
The cryptocurrency market has been experiencing a tumultuous period lately, with most assets plummeting in value. Bitcoin, the largest cryptocurrency by market capitalization, has not been immune to this downturn. As of press time, the BTC/USD pair is trading at $97,950, hovering just above the critical $96,000 support level.
The recent sell-off can be attributed to a correlation with major U.S. stock indexes, which have also experienced significant declines. The S&P 500 Futures, Nasdaq Futures, and Dow Jones Futures all recently touched their weekly candlestick’s Fibonacci reverse extension levels, indicating potential exhaustion of the bearish momentum.
However, this relationship between traditional markets and digital assets is not a new phenomenon. The increasing correlation between cryptocurrencies and stock indexes can be seen in recent data showing substantial outflows from Spot Bitcoin ETFs based in the United States. In fact, these ETFs witnessed $680 million in outflows on December 19, breaking the trend of 15 consecutive days of inflows.
Fibonacci Retracements Suggest BTC Could Drop to $93,800
Given this correlation and Fibonacci analysis, the potential for Bitcoin to continue tracking declines in traditional markets remains a possibility. The chart suggests that it could overshoot the Fibonacci target around $95,000 before potentially recovering. However, a further decline to approximately $93,800 cannot be ruled out.
This downward trajectory is further supported by the fact that Bitcoin whales are moving large amounts of BTC on the blockchain. A recent transaction saw a whale move 72,000 BTC aged 5-7 years, which could be interpreted as a top signal or even an altseason precursor.
In conclusion, while it’s difficult to predict the exact low price for Bitcoin with certainty, it appears that the asset will continue to closely follow the trajectory of traditional markets. Any further declines in stock indexes may push Bitcoin lower, potentially towards $93,800 before recovering upwards.
The article was written by Scott Matherson
Source: bitcoinist.com
