Yeliz Akmaca 
The crypto market is undergoing a sharp decline. Bitcoin (BTC) price fell from $107,114 to $102,579. This drop is also affecting Ethereum (ETH), XRP, and Dogecoin (DOGE) prices. In the last 24 hours, $651 million in positions were liquidated. Bitcoin has gained approximately $12,000 in value so far in May. It rose from $94,000 to above $106,000, then retreated to around $102,000.
Reasons for Bitcoin Price Crash
Firstly, Bitcoin encountered technical resistance. Last week, BTC, which surpassed the high of $105,663, succumbed to heavy selling pressure. This led to a 4.23% price drop. CoinGlass data shows that $84.68 million of liquidations came from short positions, with $50.96 million from shorts. Additionally, Bitcoin’s volatility is at a 10-month low, making investors cautious. A bearish engulfing candlestick erased Sunday’s 3.23% gain. The critical support level stands out at $101,000. The volatility being at a 10-month low is keeping investors cautious.
QCP Capital believes digital assets have more room for recovery. The expectation is particularly strengthened by Coinbase’s inclusion in the S&P 500 on May 19. Swissblock analysts observed that Bitcoin collected liquidity above the $104,000-$106,000 resistance range but failed to break out of this zone. Swissblock expects a decline if the price fails to hold the $101,500-$102,500 range. Based on historical on-chain volume and transaction data, analysts identify the $97,000-$98,500 range as a significant downside target.
Altcoin Decline and Future Expectations
Altcoins show high correlation with Bitcoin. Therefore, BTC’s crash hit ETH, XRP, and DOGE. Ethereum lost 8.76%, XRP 5.31%, and DOGE 9.11% in the last 13 hours. However, the overall outlook remains bullish. Bitcoin targets of $118,000 and $135,000 seem feasible. As a result, the $100,300 to $99,800 range should be watched as a support zone. Investors expect a slowdown in these levels.
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