Bitcoin (BTC) experienced a significant decline today, falling below the $93,000 mark.
As of now, the trading price of BTC is about $92,579, a decrease of about 5.87% compared to the previous closing price.
The drop came just days after Bitcoin approached the $100,000 mark and hit a new all-time high of $99,547.
After the recent rapid rise, the market may be correcting, and investors’ profit-taking behavior may also be one of the reasons for the price drop.
In addition, long leveraged positions above $3.40 billion face liquidation risks, which may further exacerbate price volatility.
Regarding whether this decline is a “bear trap” – that is, a short-term price drop induces bearish investors to enter the market, and then the price rebounds rapidly.
This decline is mainly due to the profit-taking behavior of major US institutions in the face of the upcoming holiday.
In addition, the market has not broken through the 100,000 dollar integer psychological barrier after digesting the 5.40 billion dollar purchase volume of MicroStrategy, which will also become a short-term rest and adjustment signal for the market.
However, such an adjustment does not affect the overall bull market of Bitcoin, so such a decline will become a bear trap.
Ryan Lee, Chief Analyst at Bitget Research
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