The price of BTC fell below $96,000 while altcoins experienced double-digit losses. Earlier, we noted that due to the RSI divergence, Bitcoin (BTC) 
$82,774 might face a short-term decline. Even during the best bullish periods, interim downturns are inevitable.
Cryptocurrencies Are Plummeting
The rapid price drop of BTC accelerated following Iran’s statements regarding retaliation against Israel. As of the writing, the price fell under $96,000, impacting altcoins as Ethereum 
$2,482’s decline began. DOGE saw an 11% drop, XRP experienced a 16% decrease, and ADA Coin fell by 14%. Quick gains often lead to such rapid declines during bullish phases.
The main concern could arise as the BTC price closes the day in the red. We mentioned that a liquidation of $3.5 billion in long positions down to $95,000 could trigger further declines, complicating matters for altcoins if it dips below that level.
For an upward movement, key support levels are $97,138, while maintaining $94,197 during declines is crucial. Otherwise, we might see lower wicks between $86,622 and $81,400. Six-figure prices represent a significant psychological resistance, risking faster sell-offs, hence making above $95,000 precarious for some investors.
Regardless, many positive developments, including Bitcoin reserve formation related to Trump taking office on January 20, are expected to support a rise in the first quarter.
