Bitcoin's downward trend continues to intensify, with the price of BTC falling below the significant $100,000 mark. This collapse, which began on Monday evening, is raising concerns among investors and analysts about the cryptocurrency's future trajectory.
Expert Analysis on Bitcoin's Critical Support Level
Julio Moreno, the research head at CryptoQuant, has identified $100,000 as a crucial level for Bitcoin. According to Moreno, if Bitcoin is unable to maintain its position above this threshold, it could experience a substantial decline, potentially reaching $72,000 within the next one to two months.
“If Bitcoin fails to hold around $100,000 and breaks down, there is a higher risk of seeing $72,000 in one to two months.”
Factors Contributing to Weakening Demand
Moreno attributes Bitcoin's recent price drops to a persistent deterioration in demand. This weakening is seen as a continuation of the trend following the October 11 liquidation event, which was the largest in cryptocurrency history and resulted in the wiping out of over $20 billion in leveraged positions.
The analyst further elaborated that demand has been steadily declining since the record liquidation on October 11. Market sentiment has generally trended downwards, and this has been exacerbated by the latest consecutive price declines.
“Since the big crash in October, spot demand for Bitcoin has steadily declined. ETF net inflows have decreased and the Coinbase premium has turned negative, suggesting weakening investor demand in the US as well. The crypto market's Bullish Score Index is currently around 20, clearly signaling a bearish period.”