Top Factors Influencing BTC Price: Unveiling the Reasons behind Bitcoin’s Price Plunge

Bitcoin (BTC) experienced a decline of more than four percent in the last 24 hours, dropping to the support range of $62,000 to $61,000. However, despite this dip, long-term holders of the flagship coin remained confident and unfazed.

Santiment, an on-chain data analysis provider, revealed that Bitcoin addresses holding between 1,000 and 10,000 coins had accumulated a total of 80,544 units since March 1. Additionally, addresses with holdings between 10,000 and 100,000 coins had accumulated nearly 92,000 units since the beginning of March.

There are several factors contributing to the recent decline in Bitcoin’s price:

1. BTC Halving Volatility: With the fourth Bitcoin halving just a few days away, the overall trading volume has increased by more than 10 percent, reaching approximately $46.7 billion. Many crypto traders have sought refuge in stablecoins, as evidenced by the increase of over 1 billion in Tether’s USDT supply in the past 24 hours.

2. Geopolitical Tensions: Bitcoin’s price has closely followed the movement of major global stock indexes, particularly in light of the escalating Middle East crisis, which was further intensified by Iran’s drone and missile attack on Israel. Investors have taken a cautious approach, opting to observe the unfolding geopolitical crisis from the sidelines. The ongoing conflict between Russia and Ukraine has only exacerbated the situation.

Looking ahead, it is important to focus on the support and resistance levels for Bitcoin:

– A parallel channel has formed, with $61,000 as the key support level and $72,400 as the crucial resistance level.

– If Bitcoin breaks below the support level, it could lead to further downward movement.

According to Ali Martinez, a well-known crypto analyst, Bitcoin’s price has been consolidating within the range of $61,000 to $72,400 in recent weeks. Martinez suggests that a breakout in either direction could result in a significant price movement.

On the upside, the analyst predicts that Bitcoin’s price could reach anywhere between $79,000 and $86,000. On the downside, there is a strong support level expected between $51,600 and $56,200.

Tags:
– Altcoins
– Bitcoin
– Price Analysis