Bitcoin Headed to Dangerous Territory with 1.2% Drop Today
Bitcoin falters after trying to gain support and falls back to $111K at a time when it really needs to impress investors.
Quick overview
- Bitcoin's price dropped to $111,639 after failing to maintain support around $114K, reflecting investor uncertainty.
- The cryptocurrency has lost significant gains from earlier in the month and is struggling to regain its previous highs.
- Recent selling by large investors, or 'whales', indicates a shift in support, raising concerns about Bitcoin's future performance.
- Despite the potential for a buying opportunity during this dip, Bitcoin's outlook remains bleak amid economic challenges.
Bitcoin attempted an upswing on Wednesday but was quickly brought down to $111,639 (BTC/USD) on Thursday amid investor uncertainty.
It appears that Bitcoin (BTC) has lost its stability for now and is continuing to dip into treacherous price levels. Now around $111K, the coin is back to where it started the month, having lost weeks of gains. It does not look promising for investors who were hoping Bitcoin would regain its record high on the back of interest rate cut hype.
BTC/USDA further drop at this time could be catastrophic for Bitcoin. With the coin having extreme difficulty retaining its record high, it appears that Bitcoin is not as promising at this point in the year as it was earlier. It could still end the month higher than it started, but with so much loss from the mid-month highs, Bitcoin is entering territory that could have long-term effects on its support.
Bitcoin Loses Support
Whatever support Bitcoin had earlier in the week, it appears to be fading. The downward shift today could cause a panic among investors, especially at a time when the latest interest rate cut was supposed to be giving the crypto market a boost. Bitcoin seems unfazed by the new rate cut, though, and is remaining at very low levels.
The coin has also lost a lot of whale support recently, with those who made large purchase salary this year selling much of their assets throughout August and September. Thousands of bitcoins were sold by whales recently, signaling a shift in their support and indicating that Bitcoin may not have the legs to hit $150K in 2025 like analysts previously thought.
Bitcoin is still up from its $96K starting point for 2025, but not by as much as investors had hoped. Early in the year, there was talk of the coin hitting as high as $200K, but it appears that the coin will end the year nowhere near that. Despite a few new record highs in 2025, Bitcoin has suffered from the economic tightening and high inflation rate that is affecting all markets, and it has been outpaced by Ethereum (ETH).
We may see selling pressure ramp up now that Bitcoin has dropped back around $111K, but this could also be an opportunity for investors to buy in during the dip. The Friday jobless claims report could move the coin as well, and investors are likely to be watching Bitcoin’s movements carefully at this precious point.
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