Here is the reason for the collapse

The prices of the cryptocurrency fell on Tuesday, which extended to a decline that started in November last year.

Bitcoin (BTCLess than the decisive support level of $ 89220 decreased, as it reached the lowest level during the day about 86,000 dollars.

Altcoins led to worse, with Jasmy Coin (YasimiHe decreased to $ 0.01683, and its lowest level since November 5, and 72 % lower than its highest levels in 2024. Bibi (babyDOGECOIN (DodgeIt also decreased by more than 8 %, while the common market value of all coins that were tracked by Coingecko decreased to less than $ 60 billion.

Three major incentives behind encryption crashes

There are three potential incentives for a continuous encryption accident.

First, the market reaction was negatively to the commitment of former President Donald Trump to impose a customs tariff on Canadian and Mexican goods that begin in March. These customs duties have been postponed for a month to allow negotiations focusing on drug and immigration policies.

A 25 % tariff on American imports is likely to lead to high inflation and slow economic growth, which leads to pressure on the federal reserve of behavior. The Federal Reserve has already indicated that it will only reduce interest rates when inflation approaches its goal by 2 %. However, modern economic data shows that both major inflation numbers and basic inflation are far from this goal.

Second, Bitcoin and other encryption prices decrease as American stocks have been mixed. The NASDAQ 100 has opened 0.55 % less while the S& P 500 index was almost flat. Dow was 0.36 %. The weakness in the technology sector is likely to be the market anticipation of the fourth NVIDIA profits, which is expected to provide more insight in the artificial intelligence sector.

Bitcoin price flash signal sales

Third, Bitcoin and other encryption rates, including Pepe, Dogoin, and Jasmy, have decreased, after BTC flashing a sale signal on the daily chart. The Daily Chart explains that Bitcoin formed a double pattern at $ 108,438 in December and January.

It has now been broken below the neckline at $ 89136, which confirms downward expectations. Less moving averages have also moved for 50 days and 100 days. The continuation of the sale of Bitcoin can push towards the next main support level at 73,725 dollars, the highest swing in March of last year, a 18 % decrease from the current levels. Such a step is likely to lead to more declines in the Altcoin market.

In the upward direction, there is still an opportunity for this incident to be a wrong collapse, similar to what happened on January 13, which eventually led to a strong recovery.