Bitcoin risks '20%-30%' drop as crypto markets liquidate $1.1B in 24 hours

💡 DMK Insight

Bitcoin’s drop to the bottom of its local range is a wake-up call for traders: volatility is back. The recent Fed interest-rate cut was expected to provide some support, but the market reacted sharply against that narrative, leading to over $1 billion in liquidations. This kind of price action often signals a shift in sentiment, and traders should be cautious. The current price of $108,413.00 puts Bitcoin at a critical juncture—if it fails to reclaim the mid-range levels, we could see further downside. Watch for key support around the previous lows; a break below could trigger more selling pressure. On the flip side, if Bitcoin manages to bounce back and hold above this level, it could attract buyers looking for a dip. Keep an eye on trading volumes and sentiment indicators; they’ll provide clues about whether this is a temporary setback or the start of a more significant trend. The next few days will be crucial for determining Bitcoin’s trajectory in this volatile environment.