Bitcoin price prediction is speculating that it is possible to drop to $97,000 with increasing market volatility. Geopolitical tensions currently, i.e., intensification of the Russia-Ukraine war, are encouraging investors to take refuge. Therefore, investors are looking to top support levels that will have a humongous influence on Bitcoin’s near-term path.
Dynamics Affecting Bitcoin amid Market Tensions
Bitcoin has fallen by nearly 11% from it’s all-time high of $111,000. The fall follows last week when Bitcoin fell over 3%. Analysts say that if Bitcoin falls below the midpoint level of support price at $99,600, then it could continue to fall to the level of $97,600 where some more support could be seen.
The Relative Strength Index (RSI) is around 57, and this however, indicates bullishness in the traders. Moreover, the fact that occurrence of a bear flag pattern is an indication of future movement downwards creates the need for regular observation of market trends.
Key Support and Resistance Levels
Analysts are suggesting taking note of the pivotal price levels. $108,000 is one of the pivotal resistance levels. Dipping above that level can lead to Bitcoin testing its all-time high at $111,900. Dropping to $99,600, though, may initiate a steeper decline, even as low as $97,000.
The mood in the market is bearish as geopolitical risks risk threatening risk assets. Analysts at FXStreet explains that the war in Ukraine has prompted investors toward traditional safe-haven assets, and the price of Bitcoin has not been spared.
Institutional Activity and Market Analysis
Despite bearish sentiments, institutional buying of Bitcoin remains robust. For instance, Japanese investment firm Metaplanet recently bought a further 1,088 BTC and now holds 8,888 BTC. It is a demonstration of ongoing corporate faith in Bitcoin that will be employed to hedge the price against further more severe declines.
Yet Bitcoin spot Exchange-Traded Funds (ETFs) experienced a modest outflow of $157.4 million last week, the culmination of a series of inflows since mid-April. Should the trend be unable to be reversed, it could have the potential to put additional bear pressure on the Bitcoin price.
In brief, Bitcoin will drop to $97,000 if it doesn’t succeed in key support levels amidst increasing market volatility and geopolitics tensions. Speculators will have to tread carefully in this volatile environment. Monitoring key resistance and support points will be crucial to forecasting subsequent behavior. Early movers will be able to react to developing market forces.
