Bitcoin is up after taking the biggest plunge since March 2020. The price of BTC went down by $10,000 on Monday, Jan 11th.
Bitcoin’s bullish rally was doing more than fine till Sunday. BTC price broke all previous records by briefly hitting $42K. The trading volume also hit an all-time high twice within a short span of time. But, then came correction. Bitcoin’s value dropped by 26% at the end of last week. The news of such a huge plunge took the crypto market by storm. The sentiment of fear forced many investors to sell their holdings.
Bitcoin is known for its parabolic price movements. The usual talk of ‘BTC is plain risky’ followed the recent movement. Nonetheless, bitcoin went up again and is currently sitting around $34,000.
Bitcoin Is Up, Again:
Bitcoin’s move to $34,000 shows that the plunge was not a bearish trend. The fear and buzz around BTC crashing was nothing but fearful sentiment.
Bitcoin’s instant downward surge in price is a common thing. There is no disagreement over the fact that BTC is a volatile asset. The number of bitcoin investors is very few in comparison to other traditional assets. Hence, the decisions of big whales can hugely impact the value.
The faith in bitcoin seems dwindling as crypto users are unsure of what to expect. Many analysts believe that another correction of 30%-60% is expected in the coming weeks. We will likely see the ‘Bitcoin is gone’ debate again. Nonetheless, professionals with long experience in crypto trading believe that such dips are important for establishing support. The CEO of Binance wrote on Twitter,
Retraces are painful, but they are necessary for establishing support levels. Now we have it.
So let’s see where the market goes and not jump to conclusions over small candle chart movements.
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