What are the main reasons why the price of Bitcoin is falling?

After reaching a record high of $108,000, the price of Bitcoin has dropped sharply, leading investors to question the reason behind this sudden decline. While the previous price surge brought excitement to the market, some factors are currently contributing to the downward trend. If Bitcoin fails to break through the resistance level, the price could drop to $95,000. Federal Reserve Interest Rate Decision One main reason for the decline in Bitcoin is the upcoming interest rate decision of the US Federal Reserve. However, Coinpedia reported that there is a 96% chance that the Fed is expected to cut the benchmark interest rate by 25 basis points, but there are still concerns about how the Fed will handle inflation in the future. With inflation rising to 2.8% in November, comments by Fed Chairman Jerome Powell on interest rate prospects for 2025 are being carefully considered. If the Fed cuts interest rates lower than expected in 2025, this could create additional pressure on the market. Their Profit-Oriented Traders Another important factor is the selling wave of short-term Bitcoin holders. Many traders who recently bought Bitcoin are now selling to secure profits after a major price hike. This type of selling often occurs after the price reaches a new high. However, long-term holders, those who bought in when Bitcoin was trading in the range of 90,000 to 100,000 dollars, mostly remain passive, possibly waiting for more stable conditions before taking any action. History Shows That Adjustment Is Normal Bitcoin’s past price cycles suggest that corrections are a normal part of its growth. During past all-time highs, Bitcoin has typically seen retracements of up to 34%. These short-term price drops can wipe out weeks of gains but are considered a natural part of market behavior Analysts believe that this correction could temporarily bring the price of Bitcoin down below $100,000 before stabilizing. Bitcoin Will Drop $95,000 As of now, bitcoin is trading around $104,000, marking a 2.93% decrease in the past 24 hours. However, for Bitcoin to sustain its upward momentum, it needs to turn this new high price level into a strong support level. If successful, it may have the potential to push the price above the long-awaited $110,000 mark. However, if Bitcoin fails to break and hold above this resistance level, the price could decline and Bitcoin may retreat to the next important support level at $95,651. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)