Bitcoin faces $588 Billion risk! “BTC could experience a rapid decline to this level!”

With the end of the government shutdown in the US, the leading cryptocurrency Bitcoin (BTC) has experienced a partial recovery.

Bitcoin has climbed above $107,000, and the rise is expected to continue after the crashes experienced in the historically bullish month of October.

While $120,000 levels are expected at this point, a popular analyst said that BTC is at risk of a sharp decline to $93,000 if the $100,000 support cannot be maintained.

Lock Level for Bitcoin!

Speaking to Coindesk, 10x Research CEO Markus Thielen said that if Bitcoin breaks below the key $100,000 support level, it could drop to as low as $93,000.

Thielen said that approximately 5.9 million BTC (worth $588 billion) has been traded in the $100,000 to $126,000 range over the past few months, a staggering amount of transaction value during what was considered a relatively stagnant trading period.

Stating that a significant portion of these Bitcoins are held by individual investors with weak faith or institutional investors under pressure from company executives, Thielen stated that these investors may make panic sales if the price declines slightly.

“Many of these BTC are held by investors under pressure. And a slight decline could lead investors to close these positions.

At this point, if BTC is pushed below the $100,000 support line, it could trigger selling by weaker investors, and selling pressure could intensify. Consequently, BTC could quickly fall into a liquidity gap around $93,000.

Thielen recently noted that if Bitcoin falls below $93,000, it could lead to increased volatility as the average purchase cost of 11 spot Bitcoin ETFs is close to $90,000.

*This is not investment advice.

Source