Bitcoin has dropped from ~97,000 to below 92,000 dollars in the last two days, and along with it, most major currencies have dropped in the same movement. This has created a state of fear and anxiety in the market, and people are asking:
Has the rise ended?? Is the market entering a decline?... Or is this just a consolidation phase before a new rise?
📉 Why did the decline happen?
The market is now feeling its way, and the pressure is not from a single movement... There are several overlapping factors:
1) Significant economic pressures
Political events such as threats of tariffs between the U.S. and the European Union have affected investor appetite for risky assets like Bitcoin, prompting some to move towards 'safer' assets like gold and bonds.
2) Concerns about monetary policy trends
U.S. Federal Reserve movements, and concerns about interest rate hikes or their continuation for a longer period, make investors shy away from high-risk assets like cryptocurrencies.
3) Decreased liquidity and increased outflows from BTC funds
Large withdrawals from exchange-traded bitcoin funds (ETFs) have negatively impacted market liquidity, increasing selling pressure and making the downward movement stronger.
4) Losing important technical support levels
Losing significant levels like 97,000 and then 92,000 has led to activating more stop-loss orders and increased selling.
🤯 The prevailing sentiment now: fear dominates
The Fear & Greed Index indicates that the market is in a state of 'strong fear', as:
Traders are selling before further losses occur
Investors are reducing their exposure to risky assets
Liquidity is decreasing
The market is waiting for strong catalysts to return to rising
The situation is like what many traders say:
The market is calm... and everyone is waiting
📦 Why could this be a consolidation phase?
In every cycle since around 2018, the market behaves this way:
✔️ Strong correction after a big rise
✔️ Long accumulation period before a strong upward movement
✔️ Gradual increase in liquidity with continued demand after price stabilization
The retracement to levels ~90,000–92,000 may be a quiet accumulation zone before the market starts to pump again if news or liquidity improves.
⚠️ Warning to traders
The market is still politically and economically unstable
The decline could extend below 90,000 if new negative news arises
Market liquidity is still low compared to previous movements
Investors are reducing risk now
The current phase is not a strong upward movement, but it is also not a complete collapse yet.
✍️ Summary
👇 This is what I can say as....:
⚡ Scenario One (Upward):
If the price stabilizes above 92,000–95,000
Buying volume is gradually returning
Positive news or supportive economic data
The market may enter a consolidation phase before a new rise.
📉 Scenario Two (Deeper Decline):
If we clearly break 90,000
Liquidity outside the market has increased
And significant negative news has emerged
Here the decline may be an extension of a deeper correction.
🧠 Advice:
Before any entry:
Monitor trading volume and liquidity
Set a tight stop loss
Do not enter without a clear upward scenario
If the market is calm: accumulate wisely
If the market is turbulent: wait for better
Success is not in the prediction,
But in reading the current market situation and understanding it accurately 👊🏻🔥
