The cryptocurrency market is falling today as the Bitcoin price has dipped back below $24,000 and remains below the crucial support of $23,800 right now. The price fell, but still has a chance of a bounce. However, the trading volume has to drop considerably, indicating that the bulls remained passive from the early hours of trading. Meanwhile, the bears also seem certain of the next wave of bullishness and have opted to hold to a subdued trend.
After yesterday's powerful green candles, market participants were extremely bullish on Bitcoin and expected to break above $25,000. Unfortunately, the bulls sold out, driving the price down. It should be noted that during the previous rally during the first days of 2023, the buying volume skyrocketed, leading to a 40% increase in the price of BTC.
However, during the past surge, the volume is reminiscent of comparatively low, which means an abnormal growth in the value of BTC.
Buyers had previously gone to great lengths to raise prices, and now that they are struggling less, a sense of cheating looms. Furthermore, the The US CPI has arrived. It turned out to be worse than expected, and the S&P 500 has not shown any active growth, while the crypto market continued to grow at a frenetic pace. Furthermore, the SEC-Paxos-Binance fiasco, which remains unclear, has not affected the markets to a great extent.
However, due to the SEC ban on Paxos BUSD, all liquidity is returning to Bitcoin, altcoins, USDT, etc. Now, if the BTC price manages to gain $25,000, more long positions can be closed, extracting profit. Furthermore, if the BTC price surges past $25,200More confidence in longs may emerge and prices may continue to rise to reach the next liquidity zone of $28K to $32K.
Also, if the crypto market starts with a correction, then the shorts may be active and could drag the price below $20,000.
