Bitcoin experienced a notable decline of 5.88%, dropping below mid-range support after reaching 109,588 USD on January 20. This slump stems from negative sentiment in the U.S. Equities market.
The downturn coincided with Nasdaq futures seeing a 2.9% drop, wiping out approximately 1 trillion USD from the U.S. Equity market. Such volatility is prompting cautious moves among investors ahead of the upcoming FOMC meeting.
Critical support at 92,000 USD is essential for BTC’s price stability. The bearish MACD crossover hints at diminishing bullish strength, and increased short-selling is observed in the derivatives market, reflecting the broader negative market sentiment.