As the world’s top cryptocurrency continues to reach lower lows throughout the previous month, the price of Bitcoin dropped, approaching the $97,000 barrier, indicating a general outflow in the market.
Almost $311 million in cryptocurrency positions were liquidated, with $307.89 million coming from longs and $4.78 million from shorts.
Why is the market down?
This decline is a symptom of increasing market anxiety, especially after President Donald Trump signed a bill on Wednesday that put an end to the longest government shutdown in US history.
The Bitcoin price may be creating a head-and-shoulders pattern, according to market expert Ali Martinez. His study suggests that this might pave the way for a sharp decline to as low as $83,000. If the pattern continues, this would indicate an extra 15% decrease.
Bitcoin’s Price Actions
Bitcoin is trading at $97,026.12, down by almost 7% in the last 24 hours. The global market cap is at $1.93 trillion. The 24-hour trading volume is down by 48.55%.
The forecast for the price of Bitcoin points to the prospect of a fresh bear market, despite expectations of bullish triggers. That includes increasing liquidity and a possible interest rate reduction by the Federal Reserve, combined with favourable market data.
“Today was supposed to see the delayed release of the U.S. CPI report from October, but instead it appears the government shutdown has created a black hole in the flow of federal data that may never get repaired,” Nic Puckrin, crypto analyst and co-founder of The Coin Bureau, said.
Altcoin performance
The altcoins are also a bit bearish today, with the top ones facing a tough time. Ethereum is trading at $3,198.12 and is down by almost 10% in the last 24 hours. Followed by XRP and BNB, which are down by 7.74% and 4.8% respectively, in the last 24 hours.
The larger financial market is still having difficulties even though the U.S. government has reopened following a 43-day closure. Fading expectations of a December Fed rate decrease are another major factor contributing to Bitcoin’s decline.
The Crypto Fear & Greed Index fell to 15, its lowest level in seven months, indicating significant market panic, while Santiment claims that social mood has drastically declined.
Investors are taking a riskier approach as a result of recent remarks made by Fed officials that have reduced expectations for easing. Cryptocurrency and other speculative assets have been particularly hard hit by this change, which has made traders anxious.