Bitcoin’s recent rally is showing signs of cooling, and a prominent trader warns of a potential correction if the cryptocurrency fails to break the $100,000 resistance level. The price has dropped by 1.6% over the past 24 hours, trading at $94,660.
Analysts are monitoring the situation closely, with chart analyst Ali Martinez flagging a bearish signal on Bitcoin’s 12-hour chart using the TD Sequential indicator. He predicts that Bitcoin could correct to $91,583 before potentially dropping further to $85,610.
The downturn is not limited to Bitcoin, as other altcoins such as Ripple, Dogecoin, and Solana are also experiencing significant losses. The overall crypto market capitalization has declined by 2.4%, with over $400 million in liquidations on crypto-tracked futures.
Despite the decline, small altcoins and midcap futures saw higher liquidation volumes than Bitcoin and Ether. This suggests that traders are taking on more risk, which could impact the market’s stability.
The situation highlights the deteriorating sentiment in the cryptocurrency industry, with Bitcoin failing to break the $100,000 threshold. Traders should remain cautious and monitor the situation closely as the market continues to evolve.
Source: https://www.benzinga.com/markets/cryptocurrency/24/11/42172993/bitcoin-slides-below-95000-analyst-predicts-potential-correction-to-85000