Why Is the Crypto Market Declining Right Now The article Bitcoin Falls Below $95K Falls Below $95,000 originally appeared on Coinpedia, a Fintech News Source.
With a precipitous 11.25% drop in value over the last three days, Bitcoin has shocked the market. As a result of a $1.10 billion liquidation, its value plummeted, and it is now trading for $94,715 on the Crypto market. While long traders are paying a big price, this is a fantastic time for bears. Find out what’s going on and why the cryptocurrency market is in the red today.
IMF Asks El Salvador to Change Bitcoin Policy for $1.4B Loan
Conventional institutions in El Salvador have been hostile against the nation because it was the first in the world to recognize Bitcoin as legal money. The International Monetary Fund (IMF) has advised the country to change its stance on Bitcoin. El Salvador has ignored their repeated requests for the government to reduce its exposure to cryptocurrency.
The Bitcoin nation has recently inked a deal with the International Monetary Fund (IMF) to lend them $1.4 billion to prop up their economy. However, they need to amend thBitcoin Falls Below $95K before allowing this. Everyone in the nation is on board with the plan. Although charts provide more context, experts agree that this was the primary driver of the decline.
Bitcoin’s price has declined since it reached a new all-time high of $108,364 on December 17. The first cryptocurrency is down 12.74% from its all-time high, according to Coinmarketcap. It is quite difficult to predict whether Bitcoin can survive its current situation, as it is circling a daily support level.
Signals RSI Reversing Crypto Prices and Rebalancing Market
However, the 4-hour chart presents an alternative perspective. An imminent rebellion is likely now that the RSI has fallen below 30. Right now is the time for whales to stock up on bargains.
The daily chart contains the most intriguing information. Here, we will focus on patterns rather than statistics. There it is, if you look at how the price moves in relation to the RSI. Despite the price rising from $89k to the new ATH, the RSI continued to decline.TradingView is the source.
Their travels alerted them to this price decline. The reasons for today’s decline in the cryptocurrency market should now be clearly evident. The price will soon rebalance with the relative strength index (RSI) and make a comeback as it falls.
Bitcoin Drop Triggers $1.1B in Crypto Liquidations
Because Bitcoin is the leading cryptocurrency, its market movements affect alternative cryptocurrencies. Because of this downturn, the cryptocurrency market lost 9.31% of its value, bringing it down to $3.21T. Due to the short traders, trading activity has increased by 13.77 per cent. Coinglass is the source.
The data provides clear evidence. Nearly 334,000 traders had their accounts cancelled in the past 24 hours, resulting in almost $1.10 billion loss. The ETH/USDT pair, worth $15.80 million, was the most liquidated cryptocurrency pair. As the market plummeted, long trades cost $929.16 million.
Summary
Always be ready for unforeseen events in the cryptocurrency market. The community anticipates that Bitcoin will halt its decline and recover. The market is currently anticipating large purchases. When the market drops, whales usually start to amass assets. The moving average (20) is $91,900, which is a potential target if the price continues to decline. The current zone serves as the last remaining support. Traders should exercise extreme caution in monitoring the market and protecting their funds during these periods. Certain times of day are optimal for trading.
FAQs
What is the IMF asking El Salvador to do?
The IMF has advised El Salvador to reduce its exposure to Bitcoin before they can approve a $1.4 billion loan to support the country's economy. Despite this, the country has remained firm in its stance on keeping Bitcoin as legal tender.
How has the cryptocurrency market reacted to Bitcoin's decline?
The cryptocurrency market as a whole has lost 9.31% of its value, dropping to $3.21 trillion. Bitcoin's decline has also led to a surge in liquidation activity, with over $1.1 billion in liquidations in the last 24 hours
What are RSI and how do they impact crypto prices?
RSI (Relative Strength Index) is an indicator used to measure the speed and change of price movements. When the RSI falls below 30, it suggests the market may be oversold, potentially indicating a price rebound. The current RSI suggests that Bitcoin and the broader market might soon experience a reversal.
How can traders navigate this market decline?
Traders should stay cautious and monitor the market closely, as the price of Bitcoin is nearing a support level. Many traders, especially whales, might take this opportunity to accumulate assets while prices are lower.
