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Financial and crypto markets develop in growing uncertainty and bitcoins are no exception. At a time when volatility intensifies, investors observe the critical threshold of $ 93,000 with fever attention, a key level that could cause a cascade of massive liquidation estimated to be $ 1.3 billion. This critical scenario takes place in a geopolitical context, where the trade war between the United States and China affects all risk assets. The fear of brutal Bitcoin correction, long perceived as a refuge against macroeconomic instability, feeds speculation and increases the caution of investors.
Bitcoin for $ 93,000: a decisive level to avoid massive liquidation
Since its passage under a symbolic bar of $ 100,000, Bitcoin has tried to find bull dynamics. Observers warn against swinging below $ 93,000, which could start the phenomenon forced to dispose of long levers. Ryan Lee, the main analyst of Bitget Research, suggests that “the passage below $ 90,500 would strengthen the lower feeling that could accelerate as a result of the domino effect of chain disposal”.
Coinglass data confirms the risk size: premature under this threshold would activate the wave of automatic sales, which would cause increased sales pressure on the markets. This mechanical phenomenon, which mainly affects traders who took high lever positions, would emphasize volatility and strengthen the correction far above $ 90,000.
Business tension: aggravating factor for crypto markets
The Economic War between Washington and Beijing adds another layer of uncertainty. Indeed, the United States announcement of the United States of new customs barriers on some Chinese products has indeed caused panic in the markets. This situation dropped bitcoin to $ 96,500 at the beginning of this week. Thus, these tensions worsen the caution of investors who hesitate to strengthen their positions in the face of an unstable economic environment.
However, this context could return in the long run in favor of Bitcoins. James Wo, CEO of DFG, believes that “the tension of trade could worsen the devaluation of the US dollar, which would push investors to alternative assets such as Bitcoin”. However, the idea that the first crypt could use the weakening of the currency of the Fiats will cause speculation as for the future bull recovery as soon as the storm passes.
Negotiations between Donald Trump and Xi Jinping, originally planned for this week, are now postponed, which in the coming days leaves even more uncertainty about market orientation. Investors are therefore impatiently waiting for clear signals about the development of this trade war, which could definitely tilt bitcoins in the new lower cycle or, on the contrary, catalyze the discouragement towards new heights.
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Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.