bitcoin price movements in the last 24 hours have sent the entire cryptocurrency market into a tizzy. to another state of disorder and liquidation. Notably, bitcoin has witnessed a price drop of around 5% in the last 24 hours, which has seen it <a target="_blank" href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-crash-below-100000/” rel=”nofollow noopener” target=”_blank”>breaking below the psychological price of $100,000 threshold again. Although bitcoin finally appears to find support around $96,000, the leading cryptocurrency is down approximately 10% over the past three days.
Interestingly, a technical analyst on the TradingView platform <a target="_blank" href="https://www.tradingview.com/chart/BTCUSD/me5DIAZU-bitcoin-DUMPING-But-How-Low-Will-It-Go/” rel=”nofollow noopener” target=”_blank”>suggested that the fall of bitcoin It reflects a broader trend in investment markets, while also pointing to a possible bottom in prices during the current decline.
bitcoin Price Falls Between Support Zones at Fibonacci Retracement Levels
Current bitcoin Price Action <a target="_blank" href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-mirroring-2023/” rel=”nofollow noopener” target=”_blank”>aligns closely with he Fibonacci Retracement Levels It is often used by traders to determine support and resistance. According to TradingView analysis, bitcoin price is now within a retracement zone on the 4-hour period between the 0.618 and 0.786 retracement levels from its recent all-time high of 108,135 that it reached just three days ago.
Historically, this range has acted as a strong support zone where bitcoin has demonstrated a tendency to rally. The analyst highlights that bitcoin's love of bouncing off the 0.786 level suggests that the cryptocurrency could find a temporary bottom near this range, which sits just below the $95,000 price level.
As noted above, bitcoin price found support at $96,000, but Fibonacci retracements suggest it could continue lower. The analyst suggested that it could fall to around $93,800 as an overshoot. However, any move lower could risk a more significant collapse.
Correlation with stock market indices sell-offs
A key factor influencing bitcoin's recent decline is the sell-off of major US stock indices. Although the nature of the cryptocurrency industry runs counter to that of the traditional financial world, the arrival of bitcoin spot ETFs has led to a close relationship between the two. This has caused bitcoin to become more sensitive to traditional market movements and sentiment.
As noted by the analyst, S&P 500 futures, Nasdaq futures, and Dow Jones futures recently saw a significant pullback from the 1.618 inverse Fibonacci extension levels on the weekly candlestick time frame. This connection is further emphasized by data showing substantial outflows from US-based spot bitcoin ETFs. According to data from SosoValue, these ETFs recorded capital outflows worth $680 million on December 19, breaking the trend of 15 consecutive days of inflows.
At the time of writing, bitcoin price is trading at $97,950, sitting just above the critical support level of $96,000. However, as stock indices remain under bearish pressure, there is a risk that bitcoin price continues to follow these declines and perhaps even bottom around $93,800 sooner. <a target="_blank" href="https://www.newsbtc.com/bitcoin-news/bitcoin-may-surge-to-200000-by-mid-2025-amid-mild-price-pullbacks-report/” rel=”nofollow noopener” target=”_blank”>regaining another upward momentum.
Featured image created with Dall.E, chart from Tradingview.com
