Why Is Bitcoin Price Decreasing And How Much Can It Drop?

Bitcoin is showing signs of increasing pessimism amid high greed in the market. The total cryptocurrency market capitalization has decreased by 5.44% to 3.43 trillion dollars in the past 24 hours. A specific historical liquidation level has been witnessed in the past 12 hours. But why is this happening when everyone is very positive about the market and how much can Bitcoin drop? Have you ever wondered why Bitcoin is falling today? Let's analyze what is happening in the market together. Greed brings high risks If you have been involved in the cryptocurrency field for a while and have witnessed at least one cryptocurrency cycle, you have probably seen things like this happen before. When the market falls into a state of extreme greed for many days and people feel comfortable with the market going up, the market will retreat. It is always the traders who battle the market and who have more power? Clearly, it is the market. Experienced experts always advise people to be afraid when the market is greedy. Such times are perfect for the market to take money from traders. Technical aspect of Bitcoin After facing rejection from the new ATH, Bitcoin has dropped about 13.60%. Although it did not close there and it only became a shadow. This asset has held steady and tried to rise again but failed to do so. BTC continued to move on the 20-day moving average for quite some time before dropping below this level on December 9, causing panic in the market. After that, Bitcoin dropped below the 50-day moving average and then the 100-day moving average. This is a big enough shock to the market.

BTC is currently trading at $96,607, down 2.90% in the past 24 hours. Trading volume has increased by 118% as traders start selling assets short. How low can it go? Well, that's hard to say, but the nearest strong support level is at $92,600 and the 200-day moving average is also holding this position, making it stronger. The RSI level is decreasing sharply. Currently at 38.08, not good for buyers but definitely a comfortable time for short sellers. The average directional index at 16.44 also indicates that the selling side is holding the market. Other figures According to Coinglass' liquidation data, a total of $1.75 billion in liquidation value has occurred in the past 24 hours. Most of these liquidations are from traders buying in as the market shifts positions following Bitcoin's decline. Over half a million traders lost money due to these liquidations.

Whale buy orders and large trading data from coinglass show that despite the market appearing greedy, in reality, buyers are fearful. There are very few or no buy orders around this price range, and whales are shorting BTC. The good buy orders range from $92,000 to $94,000. Does this mean that the cryptocurrency could drop even further? Yes, it could, if the market doesn't see more strong buy orders.

What can you expect? The market downturn brings desperate times. The Greed and Fear Index shows high greed, indicators point to an impending drop, making everything confusing. Note that the market tends to move against high emotional extremes. As more people short assets, Bitcoin will suddenly start to rise again. If you are considering entering the market to make trades, be extremely cautious to protect your money. High market greed is the reason for the Bitcoin price drop. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)