Bitcoin Took A Nosedive And Is Currently Reaching A Crash

Bitcoin holders might be subjected to another set of bad news. Bitcoin prices have started receding again. This fresh decline below the $100,000 zone can really prove challenging to recover. 

The recent dive of BTC is close to 10% and is rapidly cascading towards the $90,000 support zone. In case of continued decline, the aforementioned support zone might be tested.  

Experts have noticed some bearish trend lines forming. If BTC manages to recover before hitting the $90,0000 support zone, there might be some hope for bullish trends.  

The Nosedive: Crashing Below The $93,000 Mark 

BTC started the year on a wild note, with a significant peak at $102,000. This peak was welcomed by the community as it projected a bullish peak to break the $105,000 margin. However, the trend was not long-lasting.  

Recently, BTC  has been depicting bearish momentum under the $100,000 zone. First, it hit the $98,000. Subsequently, it hit the $95,000 mark. Now, it has gone deeper and has currently hit the $93,000 mark. 

Experts have formed a low at around the $90,944 mark and are urging holders to stay calm. However, there is a mixed-bag reaction in the community. Crypto heavyweight Arthur Hayes has predicted that there might be more turbulence coming ahead and there might be a crash. 

Meanwhile, cross-asset trader Bob Loukas believes the BTC might consolidate in the short term. He added that BTC needs to fiddle around before setting another, ‘all-time high.’  

The ‘Why’ Behind The Nosedive 

BTC’s nosediving below the $93,000 mark has really made investors nervous. This bearish movement came right after a good bullish run that hit the $100,000 mark. As a result, people are looking for answers. Here are three possible reasons leading to this cascading effect:  

#1 Massive Profit Leading To Mass-Scale Selling 

As BTC reached another all-time high of $100,000, investors started selling en masse. Many long-term investors have let go of their holdings for a profit. As a result, the market is flooded with BTC, which has affected overall growth.  

#2 Panic-Induced Liquidation 

Earlier, people were letting go of their BTC to earn profits. However, massive bearish movements have led investors towards panic-induced liquidation. In other words, investors are liquidating en masse to minimize their losses. Which could be a plausible reason for this decline.  

Final Thought: Anticipatory Decline

Currently, the situation is as follows: BTC needs to break the $95,000 resistance zone to start a bullish movement. Otherwise, BTC might depict another bearish trend. However, there is major support at the $92,000 mark. As a result, people are still optimistic.  

The next support or mark is at the $90,000 mark. If BTC continues this decline, it might have to look towards the  $88,500 support line soon. Therefore, 2025 might be rocky for investors. In any way, financial giant like Hedge fund QCP predicts that Trump’s big day might change this.