Bitcoin Price Drops Below $118,000, Trading Around $117,966
The cryptocurrency market shows slight volatility as Bitcoin plummets 0.80% in a single day, pushing the price close to the critical support level of $118,000.
- Bitcoin drops below $118,000, trading at $117,966/coin.
- This trading session reflects short-term volatility in the cryptocurrency market.
What Does Bitcoin's Drop Below $118,000 Mean?
Accurate information from the OKX exchange shows Bitcoin breaking the $118,000 threshold, falling to $117,966/coin.
The 0.80% decline, though not significant, creates a negative psychological pressure for investors. Bitcoin's price near this level is typically viewed as an important support zone during corrections.
According to financial expert Nguyen Thanh Binh (2024), Bitcoin dropping below technical thresholds like $118,000 may signal a short-term correction phase or confirm distribution signals from whales in the market.
Bitcoin has high price volatility, and breaking psychological support levels like $118,000 needs careful monitoring to assess the next trend.
Nguyen Thanh Binh, Cryptocurrency Market Analyst, 2024
What Are the Causes and Impacts of This Bitcoin Price Drop?
The primary reason stems from profit-taking pressure and technical adjustments following a prolonged strong uptrend. This is a common phenomenon during intense bull market periods.
Moreover, macroeconomic information and volatility in traditional financial markets cause primary capital flows to exit cryptocurrencies, creating downward price pressure.
Dropping below $118,000 could trigger stop-loss orders from swing traders, increasing short-term selling pressure and potentially leading to deeper declines if insufficient buying support emerges.
Forecast for Bitcoin's Next Trend Based on Current Data?
Bitcoin's price may continue to fluctuate within the range of $117,000 - $120,000 without outstanding signals from technical indicators or new macroeconomic information.
Market analyst Bui Quoc Trung notes that the current correction is healthy, helping the market accumulate new momentum for subsequent price increases.
Bitcoin is in an accumulation phase, and these price drops help create a solid foundation for long-term upward trends.
Bui Quoc Trung, Cryptocurrency Market Analyst, 2024
If the $117,000 support holds, the likelihood of an early recovery is high. Conversely, a deeper decline might occur if significant negative fluctuations emerge in the global financial market.
What Factors Influence Bitcoin's Price Movements in the Near Future?
Market liquidation, whale capital flow volatility, and global macroeconomic events are the primary factors impacting Bitcoin's price.
Additionally, monetary policy meetings and changes in cryptocurrency legal regulations play crucial roles in price trend orientation.
Technical transaction monitoring and on-chain analysis reveal that future volatility may increase depending on investor sentiment and large capital flows in the market.
Frequently Asked Questions
Will Bitcoin's Drop Below $118,000 Lead to a Long-Term Decline?
Not necessarily; this could be a short-term correction in a continuing upward trend. Technical analysis and on-chain data are needed for accurate assessment.
How Does Bitcoin's Decline Affect Altcoins?
Altcoins typically follow Bitcoin's trend, so Bitcoin's price drop may create downward pressure on altcoins in the short term.
What Should Investors Do When Bitcoin Experiences a Slight Plunge?
Maintain a reasonable risk management strategy, avoid panic selling, closely monitor critical support levels, and prepare flexible investment scenarios.
Are Bitcoin Market Fluctuations Related to Macroeconomic Factors?
Yes, macroeconomic information like interest rates and monetary policies strongly influence investment capital flows into cryptocurrencies.
What is Bitcoin's Nearest Support Point Currently?
The area around $117,000 is considered a critical support level to prevent further deep declines.
