There are no positive signals; Bitcoin is likely to fall further. How low will it go?

Title: No Good News, Where Will Bitcoin Drop to

Author: Rhythm BlockBeats

Source: On the early morning of the first day of the month, a needle pierced through to $75,000.

After nearly a year, we see Bitcoin starting with 7 again. The peak of the 2021 bull market was $69,000, which is very close now.

As usual, we need to look for reasons.

Geopolitical Conflicts

First, there are international conflicts. On X, known as the world’s fastest news platform, several videos show explosions in multiple locations in Iran. Currently, the US and Israel have not issued statements, and the authenticity cannot be confirmed.

Iran is also conducting military exercises in sensitive areas, demonstrating no fear at all.

Of course, the conflict between the US and Iran seems to be an open but unconfirmed issue in the market. A few days ago, the movements of the US aircraft carrier and Iran’s response caused a sharp decline in gold and other global risk assets. Increased uncertainty always causes Bitcoin, traded 24/7, to fluctuate first.

Government Shutdown

On the early morning of the 31st, local time, the US government officially began a partial shutdown. It’s so quick—last time, it seemed to happen just last year.

Previously, the US Senate passed a spending bill to fund most federal departments and submitted it to the House of Representatives for review. However, since House members are not in Washington and will not return until Monday (February 2), the Senate’s vote makes a partial government shutdown unavoidable.

Looking back at the last government shutdown that set a record, this time doesn’t seem as severe, but it’s still not good news. The main reason is that hundreds of billions of dollars in liquidity are locked up. With the weekend approaching, liquidity was already poor, so it could have been worse.

Fear of Monday

Epic declines in gold and silver have been reported, and there are rumors that some US banks are starting to fail. The market is still pricing in uncertainty, and everyone is watching what will happen on February 2.

Where Will It Drop

Placeholder VC partner Chris Burniske previously stated that key support levels to watch are $80,000, $74,000, $70,000, $58,000, and below $50,000. Short-term gains and losses are not the main focus. If prices rebound, hold and gradually diversify your holdings. If there is a deep correction, see it as an opportunity to add to Bitcoin and quality crypto assets.

Trader Merlijn The Trader previously said that an important support level for Bitcoin is around $80,000. Historical data shows that approximately 127,000 BTC were bought at this price range.