Bitcoin fever reached its peak as the largest of the cryptocurrencies crossed its all-time high of $ 62,000 on Saturday. But since then, it has seen a correction of over $ 7000 as the bitcoin price dropped below $ 55,000. Is this a good time for those waiting outside and new investors, or will we see more sales?
The drop in bitcoin price was perhaps triggered by the Indian Government’s decision to ban cryptocurrencies. This includes trading, holding and even mining. A proposed law gives companies and individuals only 6 months to withdraw from crypto-related activities.
Countries that ban cryptocurrencies are nothing new. China has banned crypto in one way or another over the years. The recent Bitcoin mining ban in Inner Mongolia will take effect in April. The local government stated that the region is implementing a ban to reduce its carbon footprint.
A pretty downside factor for Bitcoin is that institutional investors have been selling lately. According to on-chain measurements site Glassnode, the number of assets (whales) with wallets of 1,000 BTC or more is selling their bitcoins, causing a sharp decline of more than 10%.
According to Glassnode measurements, there has been no such massive ascent of whales since 2013, just before the infamous Mt.Gox failure.
The Pi Cycle Top indicator on LookintoBitcoin also seems to predict a very close market peak. The indicator works by monitoring how the 350 DMA x2 moves against 111 MDA. As they passed, it very accurately predicted the top 3 of the last bull markets in just a few days.
All in all, pretty bad news for the Bitcoin price. However, many analysts and commentators are still tremendously bullish and say the bull market still has plenty of room to walk, and their price forecast exceeds $ 100,000 to $ 400,000.
Given that inflation may be on the way and the US dollar is not looking like a major rally anytime soon, Bitcoin price may still meet these predictions. Investors looking for a chance to enter could possibly benefit from this fix.