Bitcoin is facing a sharp decline, dropping 3.34% as bearish patterns emerge. Could this signal a deeper correction? Here’s what you need to know.
Bitcoin News: Bearish Patterns Signal Trouble
Bitcoin’s recent price action has analysts worried. A breakdown from a rising wedge and the formation of a Power of Three (PO3) on the daily chart suggest weakening bullish momentum. Key points:
- BTC/USDT has fallen below a critical trendline near $115,000.
- If the pattern holds, Bitcoin could drop to $105,000–$106,000, a 9.64% decline.
- Liquidations have spiked, with $2.82 million in losses over the past hour.
Bitcoin Price Drop: Liquidation Events Spike
The recent downturn has triggered significant liquidations, particularly for long positions. Traders betting on a rebound faced heavy losses as Bitcoin fell below key support levels. This has amplified selling pressure, pushing prices lower.
Cryptocurrency Market Impact: External Factors at Play
U.S. President Donald Trump’s new tariffs could influence global investor sentiment. While aimed at trade deficits, the policy may affect risk appetite and capital flows into crypto.
What’s Next for Bitcoin?
At $114,847.21, Bitcoin is testing immediate support near $114,000. A break below could accelerate the drop to $105,000. Resistance sits at $118,500—a sustained move above this level might ease bearish pressure.
FAQs
Q: Why is Bitcoin dropping?
A: Bearish technical patterns and increased liquidations are driving the decline.
Q: How low could Bitcoin go?
A: Analysts warn of a potential 9.64% drop to $105,000–$106,000 if support fails.
Q: What’s causing the liquidations?
A: Traders holding long positions are being forced to sell as prices fall below key levels.
Q: Could external events like tariffs affect Bitcoin?
A: Yes, shifts in global risk appetite can impact cryptocurrency markets.
