Why is the crypto market down today? Bitcoin is below $95,000

Bitcoin has shocked the community by falling 11.25% in the past three days. It has lost nearly $12,000 in value and is currently trading at $94,715, and the cryptocurrency market is facing a $1.10 billion liquidation. This is a great time for bears while long-term traders pay exorbitant prices. Let’s see what is happening and why the cryptocurrency market is down today.

El Salvador loan worth $1.4 billion

El Salvador is the first country in the world to accept Bitcoin as legal tender, and it has received backlash from traditional institutions. The International Monetary Fund (IMF) has warned the nation against changing its Bitcoin policy. They urged El Salvador to limit the public sector’s exposure to cryptocurrencies, but the nation never listened.

Now, there it is A deal between the Bitcoin country and the International Monetary Funda $1.4 billion loan to support their economy. This still has to be approved, but there is a condition, which is that they will have to make adjustments to the Bitcoin policy. The country has accepted this proposal. Experts believe this is the main reason for the decline, but the charts add more to the story.

Bitcoin market analysis

BTC made a new all-time high of $108,364 on December 17 and has since been declining. Coinmarketcap shows that the top cryptocurrency dropped its ATH by 12.74%. BTC is hovering around a daily support level but it will be very difficult to determine whether it will stay here or not.

But the 4-hour chart tells a different story. The Relative Strength Index has fallen below 30, indicating that we should see an uprising soon. This is the perfect moment for whales to refill their bags at a discount.

The most interesting thing lies in the daily chart. We will not talk about numbers here, but only about patterns. If you compare the price action with the movement of the RSI, you will see this. Although the price was moving up from $89K all the way to the new ATH, the RSI continued to decline.

This shift in their movements served as an alert to this decline in prices. This should remove doubts about why the cryptocurrency market is down today. As the price declines, it will soon balance with the RSI and bounce back.

Harm?

Since Bitcoin leads the cryptocurrency market, its movements influence altcoins. With this collapse, the cryptocurrency space lost about 9.31% of its market value which now stands at $3.21 trillion. Trading activity increased by 13.77% due to short selling.

The numbers say it all. In the last 24 hours, about 334,000 traders were liquidated and lost about $1.10 billion in funds. The largest liquidation of the ETH/USDT pair occurred at $15.80 million. $929.16 million was lost on long trades as the market declined.

What do you expect?

The cryptocurrency market is full of surprises. The community expects Bitcoin to sustain its fall and come back up. The market is waiting for big buys now. Whales tend to accumulate assets when the market is down. The current area is the last remaining support, if the price falls further, it can reach $91,900 with the 20 moving average there. These are the times when traders are advised to stay more aware of the market and protect their money. Not all times are the right time to trade.