Over the last several hours, Bitcoin’s price has continued to struggle, as the currency has fallen below yet another support zone, this time the $94,000 level.
These developments occur at a time when the attitude of the cryptocurrency community is shifting in response to the current bull run and the question of whether or not it has come to an abrupt and early conclusion.
According to CryptoPotato, the negative price development around Bitcoin, which began yesterday, has been recorded on many occasions.
It is important to keep in mind that the asset had surpassed $102,000 on Tuesday morning, marking the first time since December 19 that it occurred.
Nevertheless, its run was swiftly put to a stop, and Bitcoin’s value began to rapidly and brutally decline simultaneously.
Yesterday, following the publication of the US employment data, the cryptocurrency had a five-grand drop, bringing it down to less than $97,000. This occurred within only an hour or so.
That was only the beginning of this continuous downturn, as the asset continued to fall even lower today – first to $95,000, as was reported earlier, and now to below $94,000 for the first time since January 1st.
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There has been a further decline in the value of alternative cryptocurrencies, with Ethereum falling below $3,300, Bitcoin falling below $700, and both Dogecoin and Sol falling by more than 8% apiece.
Within the span of thirty-six hours, the entire market capitalization of cryptocurrencies has seen a decline of approximately $400 billion.
The well-known cryptocurrency expert Ali Martinez brought attention to this collapse, which has the potential to mark the beginning of the execution of a bearish head and shoulders pattern for bitcoin.
It was his assertion that the cryptocurrency had dropped below a highly sought-after support line that had been established between $95,400 and $98,400.
This line was constructed by the acquisition of over 1.5 million Bitcoin by over 1.8 million addresses.
The analyst identified $92,000 as the next critical support level that has to hold; otherwise, bitcoin risks plunging to $74,000 since there is not much support until that level, considering the asset’s quick climb since the US elections.
In other words, the analyst believes that $92,000 is the next level of support that needs to hold.