Bitcoin Falls But the Bull Run Goes On
After reaching a new all-time high, the price of Bitcoin expectedly went down. Now its support line is somewhere between $46,000 and $48,000. If this level will be broken, Bitcoin can go down even lower, to $37,000. But the experts believe that today’s bearish mood on the market will not stay for a long time and the bull run still goes on.
At the moment this article was written, Bitcoin traded for $47,4 thousands, 4,4% down during the day. Its capitalization is %884 billions. Experts give their opinions about the reasons for the negative trend of the first world’s cryptocurrency. In the video blog Bitcoin: The Reality of the Situation this phenomenon is explained by the growing pressure caused by Chinese miners from F2Pool.
Crypto Daily says it’s not just a mining pool but there is an agreement between the miners. They place a lot of Bitcoins on the crypto exchanges and open multiple short positions before they do it in order to reduce the price and earn more profit. In addition, there was a correlation found between Bitcoin’s price and traditional market. The main USA’s markets are on decline at the moment and some investors sell their assets including Bitcoin to boost the liquidity. There was a similar situation during the Black Thursday in 2020.
Nevertheless, Ki Young Ju, the Chief Director of CryptoQuant, is sure that Bitcoin will be fine in a long term perspective. He believes that even if the institutional investors keep holding Bitcoin, there will be a lot of new buyers on the market soon. Ju thinks that the decline happened rather due to a poor macroeconomic situation than to the crypto market events.
How deep can Bitcoin fall down?
A well-known trader Michael van de Poppe released a video where he calls February and March “traditionally bearish months”. His advice to the investors is to make the most of this situation and buy as much Bitcoins and altcoins as possible.
The trader compared the inflow and outflow of Bitcoins on the crypto exchanges and concluded that the bull trend is still strong enough. He warns us about an even bigger bearish trend in March and believes Bitcoin can fall deeper down. Van de Poppe determined the support line somewhere between $46,000 and $48,000. In the case of a breakthrough, the trader supposes Bitcoin may fall down to $37,000 before it starts growing again.