Bitcoin Price Down Today: Why Is BTC Crashing Suddenly?

Bitcoin has gained 9.22% this week but dropped No data found for bitcoin on 45 minutes ago% in the past 24 hours after setting up a daily high of $105,784 on Friday. Why is BTC suddenly crashing today?

This bearish development comes when the crypto market is confused about the recently launched TRUMP meme coin.

Why is Bitcoin Price Crashing Today?

Bitcoin price today trades at No data found for bitcoin on 45 minutes ago after dropping No data found for bitcoin on 45 minutes ago%. This short-term pullback comes after BTC registered a 19% gain since the January 13 low. Due to this sudden surge, investors who bought the dip are likely offloading or booking profits, which explains the small retracement.

As a result of the recent uptrend drop, Ethereum (ETH) and Ripple (XRP) also registered No data found for ethereum on 45 minutes ago% and 17.83% gains, respectively. Solana (SOL), on the other hand, rose 10% today due to Trump’s meme coin.

*bitcoin price updated as of No data found for bitcoin on 45 minutes ago

Short-Term Holders Rush to Book Profits

Santiment shows that the 7-day MVRV indicator hovers around the danger zone, which short-term investors often book profits. The 7-day Moving Average (MA) of this indicator drowns the noise and provides a good data point to identify where Bitcoin price could reverse.

During consolidations, when the 7-day MA of this indicator reaches 3%, a reversal happens. Currently, BTC’s recent 18% rally has generated a similar top signal, hinting that BTC is primed for another correction.

During uptrends, these corrections are short-lived and are often reversed due to the buying pressure. Let’s take a look at the technical analysis and what it forecasts for BTC in the mid-to-long-term.

BTC Price Analysis: What’s Next For Bitcoin?

The four-hour chart shows Bitcoin has overcome the volume profile’s range high at $99.8K and set up a top at a key resistance level of $105.7K. Typically, when the price moves out of a range, it tends to trigger an impulsive move until it creates another consolidative range. Hence, Bitcoin price forecast notes that the recent breakout above $99.8K will lead to a leg up to a new all-time high.

Due to the weekend, profit-taking might lead to a pullback into the buy zone, extending from $100.4K to $99.1K. If buyers defend this retracement, BTC’s value could inflate, targeting a new all-time high (ATH).

Fibonacci Tool Forecasts Key Levels To Sell BTC

In the past two months, Bitcoin created a high of $108,421 and a low of $89,100. Using the Fibonacci tool to these two swing points reveals a target of $120,362.3. However, investors should watch for a bounce around the $100K level for an impulsive move to the upside.

The key levels to book profits or sell BTC are $100K, $115K & $120K. These areas are where investors should watch for strong reversals or exhaustion that leads to reversal.

Conclusion

In conclusion, Bitcoin’s sudden crash comes as no surprise, given the recent surge and short-term holders’ eagerness to book profits. While the 7-day MVRV indicator suggests a potential reversal, the Fibonacci tool forecast and technical analysis indicate a bullish outlook for Bitcoin in the mid-to-long term. As the market navigates the current volatility, investors should keep a close eye on key levels, including $100K, $115K, and $120K, to capitalize on potential reversals or impulsive moves to the upside.

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