At the time of writing, the BTC price dropped below $36,000, even with optimistic inflation data in the US. Just a few days ago, many experts were discussing the possibility of a drop to the $34,400 region. However, it was not expected for lower levels to be tested so quickly.
Why is Bitcoin Falling in the Crypto Market?
After testing the $38,000 level, BTC has once again dropped below $36,000. The impact of increasing short positions may be affecting BTC as it retreats to a region with significant long accumulation. The price drop and the increased open interest have led to the assumption of a growing short bias due to spot selling. The recent drop confirms this assumption. While the US stock market continues to rise, Bitcoin is moving in the opposite direction.
There is no news support for the speculative drop, and the sudden loss of risk appetite should not have occurred. Particularly with the possibility of interest rates falling more rapidly due to lower-than-expected inflation data, the drop is attributed to positions in futures. The chart shared by Kaleo suggests that after the drop to $34,200, the price will aim for $40,000 again.
