Bitcoin (BTC) Faces Notable Volatility, Dropping 3.3% Despite Strong Market Growth on Sunday

Despite these fluctuations, the hope for a recovery remains, fueled by FOMO (fear of missing out) and greed-driven investors. These sentiments could play a crucial role in Bitcoin's price movement.

Bitcoin (BTC) has faced notable volatility in recent days, with strong market growth on Sunday, followed by a complete wipeout on Monday.

Despite these fluctuations, the hope for a recovery remains, fueled by FOMO (fear of missing out) and greed-driven investors. These sentiments could play a crucial role in Bitcoin's price movement.

The crypto is currently trading at $102,907, just above the critical $102,734 support level. Despite today's 3.3% drop, further price declines seem unlikely due to the strong demand zone just below this level.

Buyers appear willing to step in at these price points, suggesting stability in the short term.

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Bitcoin Price Could Recover Its Losses

With Bitcoin having briefly risen to $107,108 earlier in the day, it seems likely the cryptocurrency will recover its losses. Investor accumulation is expected to push Bitcoin higher, and it could breach the $105,000 level again, forming consolidation above the $102,734 support. This would set Bitcoin on course for continued growth, bringing it closer to its all-time high (ATH) of $109,588, which it stands 6.5% away from.

However, the bullish outlook could be invalidated if long-term holders (LTHs) decide to sell off their positions to secure profits. If this happens, Bitcoin's price could slip below the critical $102,734 support, potentially bringing it down to the $100,000 range.

The In/Out of the Money Around Price (IOMAP) indicator suggests that Bitcoin has strong support around the $102,886 to $99,894 range, where investors have accumulated over 398,590 BTC worth more than $41 billion. This makes the region a strong buying zone, with many investors holding onto their positions in anticipation of Bitcoin's next upward movement.

A decline below this support is unlikely because investors are waiting for a price increase rather than selling. In addition to the strong accumulation zone, the general market sentiment is bullish. The ongoing support at these levels reinforces the view that Bitcoin is positioned to continue its rise.

The post Bitcoin Price Hovers Above Key Support As FOMO Pushes For More Gains appeared first on Benzinga.