Bitcoin $102,673.0 price After rising to $104,088 in the last 24 hours, it started to fall again. At the time of writing, the price dropped below $98,500 and almost completely erased its gains from the last 24 hours. So what is the reason for the decline? Why are cryptocurrencies falling and how long will it last?
Bitcoin and Cryptocurrencies Are Falling
Firstly BTC There was a wave of profit taking expected as the price surpassed six-figure levels. It is normal even in bull markets for a very rapid and steady rise to take a break at some point. This can result in losses of up to 20 percent. With prices reaching six figures in December following the rise in November, declines triggered by such profit sales are quite normal.
However, yesterday’s rise was the result of a fight against short positions liquidated at $98,000 and above. It is also normal for the price to retreat after liquidations. The most important point is that while the December 18 Fed meeting is just around the corner, there is more than a month left until January 20, when Trump will take office.
SEC With the election of the president, most of the expectations that were priced in came true. Since we see the results of the expected events in the short and medium term on the chart, the interim correction will not be surprising as there is also the potential for a pause in discounts at the Fed meeting.
But still, as the first quarter of next year approaches, markets are expected to remain bullish as the US attitude towards crypto has changed 180 degrees. In summary, this decline will probably not be very deep and will not last long. The $94,000 and $91,300 levels could be possible oversold bottoms.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
