Increase in trading volume during the downturn: In the last 24 hours, trading volumes have increased by more than 57%, reflecting a significant outflow of capital from the market.
- Dominant fear among investors: The market sentiment indicator has reached a state of "extreme fear," which is typically a stage where new investors sell at a loss while larger investors wait for entry opportunities.
- Global economic environment: There are concerns that the U.S. Federal Reserve will not lower interest rates anytime soon due to weak employment data, prompting investors to steer clear of high-risk assets like Bitcoin.
- Natural corrections: Bitcoin has dropped from levels of $126,000 to below $95,000 recently, a sharp correction caused by mass selling from short-term investors.
- Pressure on short-term holders: On-chain data indicates that many short-term wallets have entered into losses, increasing the likelihood of continued selling pressure.
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📉 Potential scenarios
- Additional drop towards $85,000 if the wave of fear and liquidity outflow continues.
- Potential upward rebound towards $100,000 if larger investors capitalize on the extreme fear state to re-enter.
$BTC #