TL;DR
- Bitcoin has fallen below $90,000, causing concern among analysts who warn of a potential drop to $73,000.
- A “diamond top” pattern on Bitcoin’s chart suggests that the cryptocurrency could continue to fall, reaching $73,000, a level that was previously observed last summer.
- MicroStrategy’s inclusion in the Nasdaq-100 index failed to boost BTC’s price, generating skepticism among investors.
Bitcoin (BTC) has fallen below the $90,000 support level, raising concerns among analysts. 10X Research has pointed out that macroeconomic pressures and a potential liquidity contraction could push the cryptocurrency’s price down to $73,000.
The recent drop in BTC comes after it failed to maintain a key support level, opening the door to a deeper correction in the coming weeks. At the time of writing, Bitcoin is trading just above $87,000, marking a drop of over 9.5% in the past seven days. Other major altcoins, such as Ethereum and Solana, have also registered losses, with drops of 11.5% and 20%, respectively.
From a technical standpoint, analysts at 10X Research identified a “diamond top” pattern on Bitcoin’s chart, a common signal of potential trend reversals. This pattern suggests that BTC could continue its decline towards $73,000, a level that aligns with the lows observed last summer. Market uncertainty is reflected in the losses of short-term investors, increasing the likelihood of further sell-offs.
Bitcoin Could Bottom at $73K and Rebound
Additionally, MicroStrategy’s inclusion in the Nasdaq-100 index has generated some skepticism. Despite the company accumulating large amounts of Bitcoin, the news of its inclusion in this index failed to boost the cryptocurrency’s price, leading many investors to view it as a “sell the news” event.
MicroStrategy’s stock has lost 29% since 10X Research’s recommendation to avoid purchasing it, reinforcing the idea that its involvement in the Bitcoin market might not be enough to prevent the cryptocurrency’s price from continuing to fall.
Despite the negative short-term outlook, analysts point out that Bitcoin has found support around $73,000 in the past. If macroeconomic conditions improve, there is a possibility of a market rebound. The market is closely watching the Federal Reserve’s policy decisions, especially starting in March, as they could alter current market dynamics and affect BTC’s direction
