Why BTC Took A U-Turn from $98k and landed at $ 92k? Reasons

There have been debates among investors and analysts after the price of Bitcoin dropped from its high of $98,000 to a low of $92,000. The price reversal is directed to a combination of profit-taking, market sentiment, and external factors. 

The first reason was that selling pressure was extreme due to Bitcoin approaching $100,000. Finally, when prices started to rise, there was a tendency of many investors to realize their gains, a development that initiated a decline in prices. Furthermore, market observers identified the “Inverse Cramer Effect”, to reduce that means investors do the opposite. 

Another factor responsible for Bitcoin’s retracement is macroeconomic conditions. Issues like liquidity crunch and reduction in fund inflows from investors have also contributed to the bearish movement. Further, levels at $98,000 and $95,000 have been barriers that could not be breached. However, analysts point out that Bitcoin holds steady at $92,000. 

In general, the tumble from $98K to below 90K shows that Bitcoin and the overall cryptocurrency market is sensitive to viable profit-taking signals, shifts in psychological sentiment, and macro forces. Despite being viewed as an investment, it is often accompanied by day and week trading. Despite negative tendencies observed in the short-term perspective, most experts expect some standing and recovery in regards to Bitcoin. 

The reason for Bitcoin’s price correction can also be attributed to the Black Friday. Black Friday is a common season for liquidations and changes in capital since everyone requires cash flows for their retail sales and year-end charges. Moreover, by far, greater focus on speculation and short-term market fluctuations also explain greater price fluctuations during the period in Bitcoin. Amidst all those speculations in the market Peter Schiff, the economist has tweeted that Bitcoin and MicroStrategy would crash.

However, as remarked by the market spectators, Bitcoin is likely to stay afloat in the long run. It has still kept very high figures and this correction might only be short-term reversal rather than signal that its scale is declining in the mid or long-term perspective.