Critical Levels in Bitcoin: Will the Price Continue to Decline?

The ongoing sell-off in Bitcoin (BTC) has once again attracted the attention of investors. With the recent price movements, the value of Bitcoin has dipped below 113,000 dollars. Warnings are coming that this downtrend may not yet be over. The cryptocurrency market has had a weak start, negatively affecting not only Bitcoin but also other assets.

The US stock markets reaching record levels has redirected investors' attention towards technology stocks. One prominent company, Nvidia, is approaching a 4 trillion dollar market value, and its CEO, Jensen Huang’s statements about artificial intelligence have led to a weakening of liquidity in cryptocurrency. Losses in major altcoins, such as Ethereum (ETH), Solana (SOL), and Litecoin (LTC), have reached around 4%. Cryptocurrency mining companies have also lost an average of 5% in value, resulting in Bitcoin trading around 112,700 dollars.

Bitfinex analysts note that Bitcoin is currently trading at a critical level. According to experts, the 113,600 dollar level represents the average cost for short-term investors. It is stated that if this level is maintained, the market's recovery trend may strengthen. However, if the price falls below this threshold, it signals the possibility of a new pullback, which could descend to the 97,500 dollar level. The Bitfinex team emphasizes that historically, falling below these levels has generally led to longer and deeper correction periods.

For investors, monitoring critical price levels and market trends during this process is crucial. Tracking the volatility in Bitcoin and other cryptocurrencies is of significant importance in protecting against potential risks. The price levels observed in the coming days will determine the directions of market participants and will have a significant impact on investment decisions.