As January dey waka finish, Bitcoin no dey show strong face at all. This digital gold wey everybody sabi as the king of cryptocurrency don dey fight to hold ground above $88,000. E don drop from higher levels earlier this week, and the market no dey smile at all.
This drop wey Bitcoin dey face come as US Dollar dey hit four-year low. Na serious wahala be this one, especially for traders wey just dey watch their money dey waka comot. For now, Bitcoin don dey low by about 1.6% since wey month start, and you fit feel the tension wey dey ground.
But wetin kon make matter worse for Bitcoin na the rising price of gold. Gold don land record high of over $5,500 an ounce dis month, and investors wey dey look for where to hide their money from wahala dey prefer gold pass Bitcoin. Na im make sense, as gold don add more than $1000 just for January alone.
As plenty people dey shout “Bitcoin na Digital Gold”, reality don dey show say e no fit play that role well when market dey rocky. Since the peak wey e see for October last year, Bitcoin don lose around 30% of im value. Dis one fit shake the confidence of institutional investors wey dey look Bitcoin as safe haven again.
Another gist wey dey fear market now be say Bitcoin ETFs don dey see big money dey comot. Just dis week alone, about $160 million don disappear from these funds. Once big players start to sell, e dey put pressure for price, abi you no gree?
Chukwudi, an analyst, talk say if US government shutdown no end quick, Bitcoin fit fall go lower levels wey nobody wan see, maybe even slide down to $60,000. That one go mean serious drop wey go dey around 30% from current price. Dis kind matter dey make many people dey panic for the market.
As of today, level wey Bitcoin dey sit now dey very shaky. E don pass below the $85,000 mark for some time and few hours ago, e dey hold im ground around $85,460. But the way Bitcoin dey waka, e dey close to $3,000 below the 50-day moving average wey dey at $88,678. Right now, RSI dey show say we fit enter oversold territory, but hope still dey say momentum fit return.
But no be only that one dey ground o! The $90,000 resistance level don dey hold am tight since last week Tuesday. If Bitcoin no fit break that level make e no enter $90,000, e go make sense for bulls to dey struggle. If dem fit cross, the area wey go follow na $95,000 to $97,000, and I dey tell you, na serious battle dem go meet there.
But if dem no fit hold $85,000 mark, e fit open door to $80,000, $75,000, or even $60,000 like dem dey talk. Na wetin wan happen we go see as days dey pass.
As we dey follow this wahala, one thing wey sure be say Bitcoin price movements dey show market moods. Whether Bitcoin fit bounce back go another high, or e go enter slump again go depend on wetin dey happen for global economy and institutional investments.
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