You want to know Why is Bitcoin falling today? but can't you understand the reason?
Don't worry, today I will show you the most important reasons that may Bitcoin falls.
Let's get started with the article.
- The main reason Bitcoin is falling
- Market Manipulation
- Macroeconomic Factors
- Receiving Profits
Now if you want to buy Bitcoin (BTC) the two best cryptocurrency exchanges are bybit and OK, also these exchanges are the only legal exchanges and they are MiCa,
Table of Contents
Why is Bitcoin falling?
The fall in the price of Bitcoin It can be due to several factors, which often combine and affect the entire cryptocurrency market.
For example, Bitcoin has been falling recently due to macroeconomic uncertainties, such as fears of a US recession, Trump's tariffs and geopolitical instability.
Additionally, seasonality, low investment activity, and speculation affect the price of Bitcoin.
However, despite the instability, some see opportunities for recovery, as the market encryption and BTC always shows signs of rising, and the biggest mistake most people make is seeing the trees and not the forest.
Market Manipulation and Bitcoin's Fall
Market manipulation is one of the worst things that can make Bitcoin fall because it involves “whales” (large investors who hold significant amounts of Bitcoin) can influence the price downwards.
Usually what they do is transfer huge amounts of Bitcoin from cold wallet at exchange offices with the aim of creating a climate of uncertainty and making people think that these bitcoins will be for sale.
However, many times huge wallets make mass sales in order to lower the price and scare people, and after a few days these wallets are bought back at lower prices and make huge profits.
Market Sentiment and Bitcoin Drop
If you watch the daily news in the BTC market, you will have seen that it is quite sensitive to market sentiment.
Negative news or events can trigger massive selling, known as “panic selling". For example, reports of hacks on exchanges like those that happened on FTX or Luna.
Always watch news from reliable sources like CoinDesk, CoinTelegraph or Reuters to see if there was any important event today.
However, you should always look at the big picture and not panic, especially if you have bought Bitcoin for the long term.
Macroeconomic Factors
Bitcoin, as the most well-known cryptocurrency, is highly sensitive to macroeconomic conditions, as it is considered a high-risk asset by many investors.
Macroeconomic factors play a decisive role in its price fluctuations, and are often a key cause for his falls.
Bitcoin is also considered decentralized, but its price often moves in line with stock markets, particularly technology indexes like the Nasdaq.
Now based on history when the Nasdaq is bearish and so is Bitcoin but there are times when there is no correlation with nasdaq
Receiving Profits
After periods when there is a rise in Bitcoin, investors often sell to secure their profits.
This can cause sharp corrections in price, especially if the rise was rapid and excessive.
So it's a good idea to take a look at what Bitcoin's levels are because if Bitcoin has made a very good upward move, you should soon expect it to fall in Bitcoin with a -10% or even a -20%.
Technical Analysis and Fall
The traders use technical analysis to predict or adapt to price movements.
What you should know is to recognize obvious support and resistance levels so that you are not surprised if the market falls for no reason.
Because reason is simply a basis of patterns that They will either have an upward or downward bias.
However, I will write a detailed guide to technical analysis in the future.
How to tell if Bitcoin is going to fall
In general, if you are going to buy Bitcoin, it is a good idea to learn the basics of technical analysis and onchain.
Personally I watch 3 charts to see if BTC will fall.
The first chart I see is Bitcoin: The Puell Multiple and with this I can see the big picture, whether bitcoin is ready to fall or is it ready to buy.
You can see this for example when it is towards red zone the fall is approaching of Bitcoin and when it is in the green The rise of Bitcoin is approaching.
The next chart I see is Crypto Fear & Greed This chart will show you when bitcoin is at levels that need to make a correction, as well as levels that need to be bought.
However, this chart requires attention because it is for spot trading and not for futures.
Finally the next chart I see is Price Forecast tools This chart shows you when bitcoin is at fairly low levels on average and when it is at high levels.
Every time it touches the red line, the BTC price is overbought and every time it touches the green line, it is oversold.
Also, this chart is for spot DCA trading.
My opinion
The fall in the price of Bitcoin It can be due to many factors, from market sentiment, macroeconomic developments to regulatory pressures.
As a BTC investor or interested party, it is important to stay informed and avoid impulsive decisions.
For me, what you have to keep in mind is that when there is an upward trend andEveryone is happy and making money. It's good to make a profit even when everyone is sad and says that the BTC will go to zero then you should buy.
Also if you liked this article you can read why are cryptocurrencies falling
Disclaimer:
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