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Bitcoin Falls Below $78K: Three Reasons to Prepare for BTC Price Collapse
Since BTC fell below the 200-day exponential moving average on Monday, the bull market for Bitcoin has cooled significantly.
A cryptocurrency expert and YouHodler executive talks about the consolidation period for Bitcoin, warning that it could last for months.
BTC fell to a low of $77,372; technical indicators point to the possibility of a further decline.
Since November 10, Bitcoin has trimmed all gains to a low of $77,372 on Monday. Macroeconomic events, Donald Trump's comments on tariffs, the performance of stocks in the United States (US) and decreasing demand among institutional investors, rank highest among the three factors influencing the Bitcoin market.
At $85,722, Bitcoin slipped under important support at the 200-day exponential moving average (EMA). Two important movement indicators, the convergence of the moving average and the (MACD) divergence and the RSI (RSI), indicate the possibility of a further decline in the price of Bitcoin.
Below the neutral line, the RSI is trending downward on the daily price chart and the MACD lights up with red histogram bars below the neutral line, thus indicating a fundamental negative momentum in the direction of Bitcoin's price.
Three factors for Bitcoin's collapse
The approval of location-based Bitcoin ETFs in the United States (ETFs) the bull cycle of Bitcoin began in 2024. The trigger has led to the inclusion of BTC in the treasury and budget of many institutions and pushed the token to new highs. But recently, institutional investors withdrew funds from BTC in response to a risk-averse attitude amid increased volatility and bitcoin price fluctuations.
According to data from Farside Investors, over several days in the previous two weeks, net flows of Bitcoin ETFs were negative. The data shows declining institutional interest, and negative net flows confirm the bearish Bitcoin hypothesis.
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