Why is Bitcoin Price Crashing Today?
Bitcoin is currently testing levels below the crucial $95k mark and is down by more than four percent in the last 24 hours. This comes after a recent announcement from Michael Saylor revealing that MicroStrategy purchased another $5.5 billion worth of Bitcoin. This brings their total holdings to around 386,500 Bitcoins, valued at nearly $22 billion.
Interestingly, the market didn’t see an immediate price jump following the purchase. According to analyst Josh of Crypto World, this is because large institutions like MicroStrategy typically buy Bitcoin over the counter (OTC), meaning their purchases don’t impact the spot market right away. However, the growing demand for Bitcoin will eventually drive prices up, especially as these massive purchases start to deplete available Bitcoin on the OTC desks, pushing more buyers into the open market.
Short-Term Bitcoin Analysis
The analyst said that the long-term bull market is still intact. The weekly chart shows continued bullish momentum, similar to what we saw in October 2023 before a major price surge. It’s normal to experience small pullbacks during a bull market, and Bitcoin’s current price action is no exception.
Right now, Bitcoin is testing support around the $94,000 to $95,000 range. If this level holds, BTC could see a bounce. If it breaks, it might see further declines toward $88,000. Even if BTC does see a pullback, the overall bullish trend remains intact for the long run.
Bitcoin Liquidity & $100K Resistance
There’s significant liquidity around the $100,000 mark, especially around $99,700. This could trigger a short squeeze if Bitcoin breaks above this level, potentially pushing prices higher. However, in the short term, Bitcoin is likely to face resistance at $100,000, leading to continued consolidation before any potential breakout.
