The market correction, which many crypto analysts have been waiting for weeks, seems to have finally arrived.
There is a noticeable red dominance in the cryptocurrency markets: Bitcoin (BTC) fell 15.2 at the time of writing to reach around $ 46,779.18. Less than an hour ago, BTC dropped as low as $ 46,931.4. Ethereum (ETH) fell 19.57 percent to $ 1,464.38 at the time of writing. Even Binance Coin (BNB), which made high gains last week, fell 20.8 percent to $ 208.
Altcoin and DeFi markets were also affected by the decline: XRP, Litecoin (LTC), Chainlink (LINK), Stellar Lumens (XLM), Dogecoin (DOGE), Uniswap (UNI) also saw a decline of more than 20 percent. Still, although the dips are significant, some analysts believe the decline will be short-lived. Popular trader and analyst @Rekt_Capital posted on Twitter, “One day, BTC Bear Market will come. But today is not that day. ” used the expressions.
Paolo Ardoino, technical chief of cryptocurrency exchange Bitfinex, explained that price drops are not necessarily signs of fundamental problems in the cryptocurrency market:
“Today’s downturn looks like a correction in BTC.”
So how much will Bitcoin drop? Of course it is impossible to predict the future. However, David Lifchitz, an officer of trading firm ExoAlpha, told CoinDesk:
“$ 50,000 looks like the first stop for a slight retracement, but while a second phase could drop to $ 40,000, the $ 30,000 zone looks like the final bottom if things get ugly in the short term.”
Bitcoin market analyst Willy Woo said on Sunday, “This is the 1T dollar consolidation level. Let’s just enjoy the view and not go crazy, this moment will be temporary. ” used the expressions.
Although it is unclear how deep the drop will be, many analysts agree that the drop is not unexpected.
Misstrader (@misstraderr), one of the local traders, warned his followers not to worry. The popular trader said on the subject:
“We are in the bull right now, friends. Coins, not a bear market, did not rise. Btc is giving correction not decline. If we were in the bear market, I’d say fear. Therefore, it holds for a maximum of 1 week and gets rid of the damage by giving upward corrections. Let’s act calmly and logically. “