Why is the crypto market crashing today? Bitcoin’s dip explained
Bitcoin's price is down! Discover why the crypto market is falling today. Get expert analysis on the latest market trends and potential causes.
Why is the crypto market plunging today?
The current decline in the crypto market is primarily linked to a tense macroeconomic context. The resurgence of geopolitical and trade tensions in North America, particularly around possible U.S. tariffs on Canada, has triggered a de-risking movement on risk assets. Capital is flowing back to the dollar and gold, at the expense of cryptocurrencies.
In this anxious climate, Bitcoin (BTC) is trading around $86,800, recording a marked decline over 24 hours. Rising selling volumes confirm a reduction in exposure, particularly on the institutional side. Long position liquidations are cascading, intensifying short-term bearish pressure.
Market sentiment has clearly shifted toward fear, despite already stretched technical indicators. This combination of political uncertainty and technical fragility keeps the market under pressure.
Key supports, whales and altcoin risk
From a technical standpoint, BTC is approaching a crucial zone between $84,000 and $86,000, identified as major support. This zone corresponds to former phases of whale accumulation. A breakdown would open the path toward $80,000, while a rebound would require a clear reclaim of $90,000, now a key resistance. The oversold RSI suggests a possible technical bounce, but with no guarantee.
In the background, whales are quietly accumulating: wallets holding more than 1,000 BTC have reportedly added nearly 110,000 BTC recently. This divergence between falling prices and on-chain accumulation suggests a possible local bottom, provided the support holds.
On the altcoin side, the situation remains fragile. Ethereum (ETH) is defending its supports while XRP is testing the $1.90 – $1.92 zone. Continued BTC weakness could trigger another wave of decline across altcoins. In this context, buying the dip remains reserved for aggressive profiles, with caution remaining advisable as long as no clear reversal signal is confirmed.
Related Articles:
Simon Dumoulin
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Go Further
See More →
Bitcoin
Bitcoin: Is the 2018 crash repeating for BTC?
Bitcoin
Crypto & Bitcoin: Key events & market movers this week
Altcoins
XRP burn rate soars: Is a Bull Run imminent?
Altcoins
Why is the crypto market crashing today? Bitcoin’s dip explained
Altcoins
Dogecoin vs. Shiba Inu: Why SHIB could explode more in February
