Bitcoin (BTC), the leading cryptocurrency, is experiencing one of the hardest declines of recent times. While BTC was trading at $ 11,300 today, it suddenly fell sharply and declined to around $ 10,600. The cryptocurrency was trading at $ 10,831 at the time of writing.
Bitcoin price was trading above $ 12k just two days ago, but the inability to hold above the key resistance level caused the cryptocurrency to decline. Recently, the crypto asset fell below $ 11K for the first time in more than a month.
Why is the Price Falling?
Bitcoin price continues to struggle as it is above the $ 10k resistance. The last trip to $ 12,000 may have ended for a while, now just a few days later the cryptocurrency is traded for less than $ 11,000. The reasons for the sudden and sharp decline in bitcoin include a strong recovery in the dollar, the increasing uncertainty surrounding the upcoming US election, and several mining pools that have moved large amounts of BTC to the exchanges.
In the past few days, the cryptocurrency market has turned into a big red sea and almost all assets are suffering from a larger market crash. Stocks are also down and gold is falling too, potentially suggesting a change in the upcoming wave.
Historically, September has not been a strong month for Bitcoin and other cryptocurrencies. In addition, there may be dips below the current level over the next few months. The next key “return date” for BTC is December 2.
This theory is also compatible with post-election recovery. The election is particularly important as the United States is in extreme political unrest and the two parties are beginning to clash more than ever. A Joe Biden victory could cause the markets to collapse further, while Trump’s victory could lead to a rally.
Markets in Fall
Whatever the reason, the markets are falling, causing the Bitcoin price to drop. As for how deep the correction can go, it seems likely that the $ 10,250 zone will be retested at this point.