The cryptocurrency market witnessed a sharp decline, with Bitcoin (BTC) dropping to $94,835, down nearly 2% in the last 24 hours. Altcoins have also suffered, amplifying the bearish sentiment. What caused this sudden downturn? Key Reasons for the Decline Economic Data Shockwaves The release of U.S. economic data, including higher-than-expected JOLTS job openings at 8.10 million and robust ISM Services PMI of 54.1 , has rattled risk markets. BREAKING: ISM Services PMI jumped to 54.1 points in December, beating expectations of 53.5. New orders surged to 54.2 points while the index of employment decreased to 51.4 points, in-line with estimates. Concerningly, prices paid rose to 64.4 from 58.2 in November, the highest… pic.twitter.com/sMghyjhJDJ — The Kobeissi Letter (@KobeissiLetter) January 7, 2025 These indicators suggest economic strength and imply that the Federal Reserve may slow the pace of rate cuts, maintaining a hawkish stance. This outlook is unfavorable for high-risk assets like cryptocurrencies. Liquidations in the Crypto Market Within 24 hours, $331 million worth of long positions were liquidated, with 131,979 traders affected. Ethereum (ETH) also slipped below $3,500, reflecting broader market distress. Bearish Technical Patterns Bitcoin broke below its upward channel, breaching the critical support at $97,204. The move has shifted momentum to the downside, with traders eyeing the $92,500 level as a potential demand zone. What’s Next for Bitcoin? Support and Resistance Levels Immediate support lies at $92,500, followed by a stronger zone at $91,947. On the upside, resistance is seen at $96,080, with additional hurdles at $98,856. Market Sentiment The RSI at 34.76 indicates oversold conditions, raising the possibility of a short-term rebound. However, sustained recovery depends on Bitcoin reclaiming $97,204 and breaking above resistance. Long-Term Outlook Despite near-term headwinds, Bitcoin’s fundamentals, including a $1.87 trillion market cap and limited supply of 21 million coins, remain strong. Analysts suggest monitoring demand levels near $92,000 for potential recovery. Key Takeaways: Bitcoin broke below critical support at $97,204, triggering bearish momentum. Economic data suggests fewer Fed rate cuts, weighing on high-risk assets. A bounce near $92,000 could form a double-bottom pattern, signaling potential recovery. Investors are advised to remain cautious and watch these critical levels closely. You might also like Bitcoin Price Prediction 2024 – 2034 $BEST Wallet: Web3 Simplified, $6.7M Raised in Presale Best Wallet is revolutionizing Web3 with its innovative platform, supporting thousands of cryptocurrencies across 50+ major blockchains, including Bitcoin and Ethereum. The wallet enables secure buying, selling, and swapping of assets within and across chains—without requiring KYC verification. The $BEST token presale has already raised an impressive $6.7M, with just over 21 hours remaining until the next price increase. Currently priced at $0.023525, $BEST offers exclusive rewards, early access to projects, and a gateway to its rapidly expanding ecosystem. Why Invest in $BEST? Utility-Driven: Designed for seamless use in DeFi, staking, and token claims. Early-Mover Advantage: Gain access to presale perks and exclusive project launches. Expanding Ecosystem: Rapidly growing community with partnerships on trending platforms like Pepe Unchained. Don’t miss your chance—secure your Best Wallet tokens now before the price increases. Join the presale and become part of the Web3 revolution! The post Why Did Bitcoin Suddenly Crash? Key Factors Behind the BTC Plunge appeared first on Cryptonews .
