Famous crypto analyst points to $100,000 level for Bitcoin.

The cryptocurrency market experienced a significant decline last Friday, and investors are monitoring the situation closely. Charlie Erith, Founder of Wiston Capital, noted that Bitcoin (BTC) maintained its resistance during this process, while altcoins suffered major losses. Erith expressed that the sharp sell-offs were triggered by leveraged transactions, emphasizing that this situation is crucial in terms of the volatility of crypto assets.

Pointing out that Friday's market movements were not only due to technical reasons, Erith explained that Donald Trump's threat of a 100% additional tax on China was also a trigger for the decline. However, according to Erith, while Bitcoin performed stronger than expected, Ethereum (ETH) and other altcoins lost 33% of their value within 25 minutes. The total wiping out of 560 billion dollars in market value has created a concerning situation for cryptocurrency investors.

Erith highlighted a critical threshold for Bitcoin, emphasizing the importance of the $100,000 level. The 365-day moving average values are a line that separates bull and correction periods, according to the expert. He stated that it could be natural for Bitcoin to drop to this level. However, a drop below this level could lead to a deeper correction, which stands out as a situation that investors must monitor closely.

Additionally, Erith noted that the rise of the VIX index does not create buying opportunities for riskier assets. He expressed that investors do not need to rush before volatility peaks. The ongoing uncertainties and fluctuations in the cryptocurrency market are forcing investors to act strategically.