Despite facing the worst daily selling pressure since the collapse of Three Arrows Capital (3AC) in June 2022, Bitcoin has shown incredible resilience, trading above $95,000. The crypto king saw a brief decline to $94,726 before executing a noteworthy reversal.
According to Bitwise Europe's head of research, André Dragosch, this resistance could be an indication of "seller exhaustion." Wide-ranging effects resulted from the 2022 collapse of 3AC, which affected significant crypto lenders and led to other bankruptcies. Concerns about the global trade war have kept investors cautious. Significant negative volatility might result from a possible decline below $93,000, which could liquidate leveraged long bets worth over $1.7B.
If Bitcoin drops below $93,000, analysts predict a potential drop to $91,500. While Bitcoin is known for being a hedge against the volatility of traditional finance, rising trade tensions could soon send it below $90,000.
Market players expect talks between Chinese President Xi Jinping and US President Donald Trump to address trade concerns. Reports, however, suggest that the conference may be postponed.
