Bitcoin Price Drops 4% to $88,588 as Analysts Warn of Correction
Bitcoin's price has dropped 4% to $88,588, with a market capitalization of $1.756 trillion. Analysts note a potential top-formation pattern similar to 2021, suggesting a further correction of 10-20% is possible.
Key Points
- Current Bitcoin price action resembles patterns from 2021.
- Potential consolidation at current levels may precede further declines.
- Loss of crucial support levels raises the risk of a drop to around $70,000.
- Next critical support is identified at $93,198.
- Open interest has decreased by 1.34% to $56.69 billion.
Source: Ali charts
Market Sentiment and Predictions
- Arthur Hayes predicts Bitcoin could retrace to $70,000-$75,000 amid US political uncertainty regarding budget proposals.
- Recent net outflows from Bitcoin ETFs reached $937 million, indicating weakened market sentiment.
- Fidelity's FBTC reported the largest outflows at $344 million.
- Tight inflationary conditions limit Federal Reserve's ability to cut rates.
Source: Glassnode