Bitcoin Drops Below $121,000; Support Seen Around $117,000
Bitcoin has experienced a pullback, dropping below $121,000 after reaching new all-time highs. This represents a more than 4% decline from its recent peak of approximately $126,200. Major altcoins like Ethereum and XRP have also suffered losses, with 24-hour declines of 5% and 6%, respectively. In contrast, BNB posted a 5% gain among large-cap cryptocurrencies.
Key Support Levels
- The Cost Basis Distribution (CBD) indicates a support cluster for Bitcoin around $117,000, where approximately 190,000 BTC were acquired.
- This level may attract demand as recent buyers seek to defend their investment positions, potentially stabilizing the price.
- The $120,000 to $121,000 range currently being tested holds a thin supply cost basis, suggesting potential buying activity at this level as well.
Investors' reactions to these levels will be crucial in determining whether Bitcoin can find a bottom or continue its downward trend.