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Bitcoin Decline: Key Factors and Prospects
Bitcoin dropped 2% to 115,500 dollars due to three main factors:
1. The impact of the options market
- 5.6 billion dollars in BTC options have expired
- The maximum pain price at 117,000 dollars leads to position liquidation.
2. Technical issue
- The price has dropped below the important support level of 118,859 dollars (Fibonacci level 23.6%)
- 81 million dollars have been liquidated as the upward trend shifts to a downward trend.
3. Macroeconomic pressure
- The new tariffs of the United States (10-41%) strengthen the dollar
- The DXY index increased by 3% in six days.
Current market conditions
- The Fear and Greed Index has dropped to Neutral (57)
- RSI at 49.44 indicates the possibility of further decline
- The next important support level is $114,500
Things to watch
- ETF cash flow trends
- The evolution of the dollar's strength
- Price action around the support level of $114,500
The market is currently waiting to see if this is a temporary adjustment or the beginning of a deeper pullback.