Bitcoin Traders Expect More Pain Ahead After BTC Falls 50% From Peak

💡 DMK Insight

Bitcoin’s drop below $63,000 is a wake-up call for traders: volatility is back. After peaking in October, this 50% decline signals potential bearish sentiment in the market. Traders should be cautious, as further dips could be on the horizon. Key support levels to watch are around $60,000 and $55,000; breaking these could trigger more selling pressure. Look for volume spikes or changes in funding rates to gauge market sentiment. If Bitcoin continues to slide, it could drag down altcoins, especially those closely correlated with BTC like Ethereum. But here’s the flip side: if Bitcoin finds support and bounces back, it could set up a buying opportunity for swing traders. Keep an eye on the daily charts for signs of reversal, like bullish candlestick patterns or RSI divergence. The next few days will be crucial for determining whether this is a short-term correction or the start of a longer bearish trend.