BTC price drops by $1,000, and an analytical look at what happened!
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Answer BTC price drops by $1,000, and an analytical look at what happened!
BTC price has fallen sharply in the past few hours, as the price fell and tested a key level of psychological support near $18,000.
The drop started yesterday, December 8, as the world’s number one cryptocurrency fell to around $18031 from $18,770.
Bitcoin then climbed back to the $18,200 level at the time of writing.
The last time the bitcoin price saw a similar drop was on the 1st of December after bitcoin reached an all-time high of around $9,920.
According According to Ki Young-joo, CEO of CryptoQuant, the availability of large amounts of bitcoin on the exchanges offered by large account holders “whales” contributed to the drop in prices.
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Ki Young Joo added in his analysis by saying:
When it comes to forecasting prices in the short term, I think the most important data is supply and demand.
I think this sharp drop starts from the massive supply of bitcoin on the exchanges.
There are many whales who keep their bitcoin in exchanges and make it readily available for sale.
Others see new buyers taking their profits from the market.
In this regard, Lucas Huang, Head of Growth at Tokenlon, noted:
From a retail trading perspective, an 80% increase in the bitcoin price over just two months could be a very attractive profit.
Therefore, many of them decided to reap these profits.
While investor Jihan Zhou, co-founder of Kenetic Capital, disagreed with all the above-mentioned analyzes and indicated:
Bitcoin’s latest move down is a rest stop en route to $30,000 levels by mid-2021.
Experienced bitcoin investors are well accustomed to these fluctuations and understand them as opportunities to buy dips.
In the longer term, we can expect these moves to become less frequent as institutional funds continue to rush into the market and volatility will decline further.
Read:Why was the Petro cryptocurrency not affected after the recent decline in oil prices?
If the buyers fail to push prices above the $18,600 level, a downward wave may break out which many analysts agree.
As is typical of bitcoin’s decline, many other cryptocurrencies have followed bitcoin’s path.
Ethereum dropped to $560 and Litecoin to $76.
Meanwhile, traditional markets held their ground today, with the Dow Jones Industrial Average closing 0.35% in the green and the S&P 500 up 0.28% on the day.
Read also:
Eight important tips for trading cryptocurrency
Best Cryptocurrency Trading Platforms That Support Ethereum Staking 2.0
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