Bitcoin Drops Below 100K USD: The End or the Beginning of the Rising Cryptocurrency Market

Bitcoin, the giant of the cryptocurrency world with a market capitalization of around $1.9 trillion, has experienced a significant downturn, dropping below the psychological threshold of $100,000. This sudden sell-off, which took place in just three days, has prompted many investors and analysts to question whether this is the end of the current bull market or a sign of a healthy correction in the ongoing uptrend. Temporary Retreat or Reversal of Trend? The price action was particularly notable this week, as Bitcoin broke through the $100,000 support level, which had been holding steady for eight consecutive days. Market analysts pointed out several factors contributing to this decline. A significant impact was the market makers' strategy, including pushing the price higher to encourage traders to open long positions at around $98,000, thereby increasing liquidity. After this liquidity drought, market makers used a speech by Federal Reserve Chairman Jerome Powell as a catalyst to drive prices down, filling the ineffective price levels at $93,744 (50%) and $90,513 (100%). Analysts explain, "The decline of Bitcoin is necessary because there are inefficiencies that need to be filled at certain price levels, which are $93,744 for 50% and $90,513 for 100%. The inefficiency rule stipulates that traders must fill 50% or 100% of the inefficiencies." They added that market makers "deliberately push prices up to encourage traders to open long positions, thereby increasing liquidity at $98,000. Exhausted market makers decided to wipe out liquidity at $98,800 and used Powell's speech as a catalyst to fuel the downtrend." Experts currently predict that the price will surge to $101,000 before a pullback or continuation, as the range of $93,788 - $92,200 is currently playing a strong support role. This area has seen significant buying orders, in line with the recent inefficient 50% level. A surge from this level seems inevitable. BlackRock and Organizational Actions Signal Confidence in Bitcoin Amidst the volatility, BlackRock, one of the world's leading asset management companies, has become the focus due to a significant investment in Bitcoin. According to information from Arkham Intelligence, BlackRock not only bought Bitcoin while other ETFs were selling, but also accumulated a considerable amount, currently holding 122.6 thousand BTC. This makes BlackRock the 11th largest holder of Bitcoin, controlling approximately 0.6% of the circulating supply. Their strong accumulation, including a recent $1.5 billion purchase, is in stark contrast to the overall market's net selling of $785 million worth of BTC this week. BlackRock's actions have sparked discussions on platforms like X, with many applauding or humorously noting their transition from traditional assets to digital currency. In addition, BlackRock's participation in the cryptocurrency market was emphasized when their BUIDL Fund received $100 million, signaling a strategic shift towards digital assets. A financial powerhouse of this magnitude can understand this move as a vote of confidence in the long-term viability of cryptocurrencies, capable of influencing market sentiment and motivation. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)