The new all-time high of $ 58,000 that Bitcoin reached a week ago was short-lived, with prices dropping. Bitcoin lost more than a fifth before a slight correction temporarily stimulated the market. Bitcoin’s decline to $ 46,000 has often raised doubts that the leading asset was making its normal healthy correction.
Why did Bitcoin fall?
Tether became the victim of American regulators who described itself as fraud, banned it from conducting business activities in New York, and fined it with a $ 18.5 million fine. These events have been cited by many as the reason for the decline of Bitcoin.
The FUD is growing with the thought that a collapse is coming at much lower levels.
What do analysts say?
While most analysts are bullish as usual, CryptoWhale insists that those buying from bottom should be careful this time.
In turn, other analysts stick to the perception of a reversal that should occur. Key factors include Coinbase’s premium performance, miners’ activity, and futures funds movement.
Analyst Joseph Young reveals this in the tweet quoted below.
“I expect a gradual improvement in Bitcoin.
– Coinbase bonus consistently positive
– Miners sold too much Bitcoin (selling pressure reached its peak)
– Futures funding rates were completely zeroed
It would be more optimistic if there were some more stablecoin entries.
The head of the crypto asset management fund draws the attention of traders to the possibility of lowering prices to get whales to sell by retail investors.
“Reminder – some people holding bitcoins have weak hands. People sold BTC 10% higher than where Elon bought $ 1.5 billion. Also, keep in mind that there are big players pushing prices down to fill bids. Be appropriate. ”
Bitcoin is currently trying to correct upward. An overnight increase of 4% positions Bitcoin for the transition to previous support. An exit could herald a new entry for $ 48,000.