Bitcoin’s price has fallen to $95,000, alarming analysts who predict a possible drop to $60,000 before Trump’s inauguration. Significant profit-taking activity and increased transfer of Bitcoin to exchanges indicate growing selling pressure. Key support levels are critical to watch; failure to maintain them could signal further declines in the market.

The price of Bitcoin has recently slipped to approximately $95,000, prompting market analysts to speculate about a potential decline to as low as $60,000 before the inauguration of Donald Trump on January 20. This bearish sentiment is evident as significant amounts of Bitcoin, exceeding $3.23 billion worth, were transferred to exchanges last week, indicating notable profit-booking activity. The on-chain data reveals persistent selling pressure and a need for Bitcoin to reclaim crucial support levels, particularly the $97,300 area, to avert further price declines.

Analysts highlight that Bitcoin’s recent attempt to breach the $100,000 threshold was met with resistance, leading to increased profit-taking among holders. On December 23, approximately $7.17 billion was realized in profits, showcasing intensified market activity. Additionally, a surge in Bitcoin exchange reserves further compounds the concern as investors position themselves for potential market downturns.

Crypto expert Ali Martinez has pinpointed key support zones for Bitcoin between $97,041 and $93,806. Should the cryptocurrency breach these levels, a rapid descent to $70,085 could ensue, according to Martinez. Traders are also displaying caution, as evidenced by the decrease of long positions on Binance from 66.73% to 53.60%, indicating diminishing optimism about Bitcoin’s near-term outlook.

While some analysts remain apprehensive, a small faction retained hopes for a rally if Bitcoin can maintain its stance above $100,000, with projections suggesting a possible price escalation to $168,000. However, the current market dynamics display bearish inclinations, with predictions suggesting further volatility leading up to the inauguration.

Notably, veteran traders such as Tone Vays have voiced concerns about Bitcoin’s capacity to sustain its crucial support level of $95,000, likening potential declines to as low as $73,000. In contrast, other experts, like Benjamin Cowen, anticipate possible flash crashes to $60,000 around the inauguration, reflecting significant divergence in market sentiment. Investors are increasingly shifting their focus to altcoins, anticipating robust recoveries despite Bitcoin’s challenges.

The volatile nature of Bitcoin and its susceptibility to market forces are well-documented, and recent price fluctuations have prompted extensive analysis from experts in the field. Currently trading around $95,000, Bitcoin’s trajectory is under scrutiny as analysts anticipate potential lows in the forthcoming weeks, driven by adjustments in investor sentiment and profit-taking strategies. The increasing volume of Bitcoin moving to exchanges emphasizes cautious behavior among investors, reflecting a broader concern regarding market stability as key support levels are tested.

In summary, Bitcoin is experiencing significant selling pressure and may be on the verge of dropping to $60,000 as analysts predict a volatile market landscape leading up to Donald Trump’s inauguration. Key support levels are critical for stabilizing prices, and a failure to maintain these could accelerate declines. The contrasting views among market participants highlight the uncertainty surrounding Bitcoin’s future, prompting some investors to pivot towards altcoins as potential opportunities arise amidst Bitcoin’s struggles.

Original Source: coingape.com

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