on the crypto
Usually, a drop in the price of an asset is interpreted as a loss for the asset and its investors. However, with the application of fundamental analysis, there could be anomalies, and this could be the case with the largest cryptocurrency: Bitcoin.
At the time of writing this report, Bitcoin is struggling to stay above $ 30.000, despite having lost 7,60% of the price value over the past 7 days and nearly 4% of daily losses, Bitcoin manages to stay around. to 31 thousand dollars; but this quotation it may not hold up for long, as analysts note. For the bulls to stay on top, the bulls must hold the $ 32.000 price level.
Otherwise, Bitcoin could enter price levels of over $ 20.000. At $ 20.000, many consider Bitcoin to be in a danger zone, but there are significant factors that show that Bitcoin at $ 20.000 is even more bullish than a Bitcoin above $ 40.000.
Bitcoin may need to correct its March steps
Recall that analysts said that Bitcoin may have hit $ 60.000 too quickly. This was a sentiment shared by many traders and analysts.
While Bitcoin was expected to continue the bullish rally from November 2020 until the New Year, the rise to $ 60.000 happened so quickly that analysts collectively concluded that the purchases were bearish and that the market volume could not be sustained. in time.
Weaker hands must be eliminated from the market
On the other hand, the on-chain data presented by analyst Williams Clemente showed that there was a massive outflow of funds from exchanges.
These addresses were traced to new accounts, which were labeled "weak hands". Assad Tannous, the chief trader of the Assena investment firm, explained that for Bitcoin, reaching $ 100.000 is inevitable, but Bitcoin may have to drop as low as $ 20.000 - flush out weak hands - to begin the journey to $ 100.000.
The recovery of Bitcoin will take the market by storm
“Clean up the old, to let the new in” is a phrase that describes the current state of the Bitcoin market. The relocation of miners from China helped to undermine the market's dependence on Chinese bulls. As new countries adopt Bitcoin, the volume of trade is expected to flow from more religions.
Meanwhile, two major developments that show that the market is already preparing for a rebound, is the accumulation process of Bitcoin miners over the past month. The whales have instead started withdrawing their Bitcoins from exchanges; an activity that analysts consider highly bullish.
And what do you think of the recent drop in Bitcoin probably triggered by all the fuss raised by China? Are you still convinced that the digital currency par excellence can reach 100 thousand dollars by the end of this year? Let us know in the comments below.
