Bitcoin has seen a dramatic decline of $4,000 over the weekend, leading to liquidations totaling $527 million and impacting approximately 177,000 traders. This sell-off appears to be structural rather than stemming from fundamental issues, primarily influenced by low liquidity during the weekend and high leverage in the futures markets.
Market analysts are closely monitoring significant support levels, which include the $84,000 to $86,000 range that represents the average cost related to ETFs, as well as the $80,000 to $82,000 zone, indicative of the realized price for short-term holders. These thresholds are crucial as traders assess potential recovery points.
In light of the Federal Reserve”s plans to conclude quantitative tightening on December 1, along with expectations for a potential rate cut, many experts view this situation as a temporary correction. This perspective may create a favorable environment for investing in Bitcoin and other major altcoins, as seasoned investors often consider such price dips as opportunities to enter the market.
