Key Points
- Bitcoin fell below $106k, indicating a short-term bearish bias with potential to drop to $100k.
- Despite market fears, Bitcoin remains strong, suggesting investors view it as a store of value.
Bitcoin’s [BTC] value has dropped below the $106.5k mark, indicating a short-term bearish bias.
There is a possibility that it could further drop to $102.5k or even as low as $100k.
Geopolitical Tensions and Market Fears
The world currently faces escalating geopolitical tensions, with the possibility of war heightening as nations in the Middle East exchange missiles.
Inflation in the U.S has slowed, but it has not reached the Federal Reserve’s target rate.
There are also looming tariffs and economic uncertainties.
These factors have prompted investors to turn to gold as a store of value.
Despite these fears in traditional markets, Bitcoin has managed to stay above the $100k mark, suggesting that investors are treating the cryptocurrency as a store of value.
Investor Behavior
According to a post on CryptoQuant Insights, there hasn’t been a significant change in netflows, indicating that holders are not realizing profits and exiting the market.
The Open Interest on centralized exchanges has not shown a large drop, implying that there hasn’t been a large-scale sell-off.
High Open Interest levels suggest that speculative interest remains high, despite market fears and uncertainties.
This could be an indication that investors are currently adopting a wait-and-see approach.
Crypto analyst Axel Adler Jr noted that to resume the uptrend seen in June, the index must climb beyond 60%-65%, which would require sustained demand and capital influx.
The 1-day chart suggests a bearish bias for Bitcoin in the coming days, with selling pressure dominating and downward momentum prevalent.
Despite potential short-term volatility, the strength of the holders in the face of market fears is encouraging.
This suggests that it might be wise for retail investors to adopt a similar wait-and-see approach.
