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Bitcoin [BTC] crash forced the investors into fight or flight mode?

Priya

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Bitcoin [BTC] crash forced the investors into fight or flight mode?
Source: Unsplash

Bitcoin [BTC], the cryptocurrency which led to the birth of the rest of the coins in the market, seems to be slowly losing the trust of its investors. The biggest cryptocurrency by market cap has been continuously splintering blood because of the bear’s attack, making the investors the collateral damage.

Since the beginning of the year, the coin is pictured tumbling in the market despite several investors and market speculators claiming that the coin is going to touch new horizons. However, it now looks like the coin is going the opposite way when compared to last year during this time frame.

Additionally, last week witnessed Bitcoin breach the $4000 mark within a 15 minutes timeframe. This, in particular, left the market devastated as the price, which was opened at $4119.76 on November 24 at 21:15 UTC, recorded a fall to $3869. This resulted in its catastrophic fall below $3500 line, bouncing off $3463 mark.

Bitcoin 15-minutes price chart | Source: Trading View

Bitcoin 15-minutes price chart | Source: Trading View

This price has had a massive impact on the investors. Majority of them seem to have broken down because of the bear’s grip, as they have declared exit from the space. Whereas, some of the old investors have decided to stay beside the coin through its hardships. Nonetheless, despite this price action being predicted by a few traders, there are some speculators trying to reason the fall.

DidYouSayBitcoin, a Redditor, said:

“Lol – the candles are at 15 minute intervals. It’s definitely not multiple people selling Bitcoin. If there’s enough sell pressure in one 15 minute window to bring it from 4150 down to 3900 I’m going to assume it’s something bigger than just your average mom and pop deciding to sell their Bitcoin”

However, hanzyfanzy, another Redditor, had a different perspective on the situation, stated:

“I see you are in the denial stage. It was in reality thousands of different entities that set stop losses at these levels and the btc automatically sold. As more stop losses triggered, the price fell more and triggered even more stop losses. It’s not like they were sitting there with their hand on the sell button. And it sure as hell wasn’t some maniacal rich dude sipping whiskey hitting the big red button.”

Additionally, there are people who claim that the biggest cryptocurrency is currently as good as dead or is in its final days.

EverStoneTheGreat said:



“Why does nobody realize that BTC is just about dead? BTC is NOT profitable to mine unless you have free electricity and miners that are already paid for. Therefore, because BTC is not profitable unless the above is free, it has actually become the most centralized crypto out there as only a few can afford to mine it. POW is DEAD, POS and DPOS is the future. Give this selloff a few months to clear all the crap out of the crypto world and you will see XRP. XLM and TRX take the lead in the next wave.”

The space also showed that the strong believers of the coin remained loyal to it and continue to acknowledge its achievements.

Anthony Pompliano said on Twitter:

“Since Bitcoin’s launch less than 10 years ago: – Reached tens of billions of market cap – Created most secure network in world – Accepted as currency by US government – Covered daily on CNBC/Bloomberg – Millions of people hold Bitcoin What a time to be alive!





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin price prediction: BTC prices primed for small correction that could evolve into a major correction

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Bitcoin prices primed for a small correction which could evolve into a major correction
Source: Unsplash

Bitcoin has been on a parabolic bullish rally for quite a while, which was followed by sideways movement of the price. However, at press time, the pattern formed indicated an imminent correction.

At press time, Bitcoin was priced just below $8,000, i.e., $7,979 and had a market cap of $141 billion. The dominance of Bitcoin had reduced as the rally ceased and stood at 57%.

Descending Triangle Pattern

Source: TradingView

As seen in the chart above, Bitcoin’s prices are enclosed in a continuation pattern, i.e., a descending triangle, which is a bearish pattern for Bitcoin. The volume for the same can also be seen decreasing over the course of the pattern, which affirms the above pattern.

When the pattern unfolds, the price will break out of the pattern and head downward; the only thing stopping the price from dipping is important resistance points. The price is likely to hit $7,820 level after the breakout, however, if the former level fails there are subsequent resistance points at $7,674, $7,529, and $7,256, which will be tested in that particular order.

A possible Double Top in the formation?

The above breakout is a short-term movement of price, however, on a longer time frame, the price is stuck in limbo, which explains the sideways movement. The parabolic rally was quick which is why most prominent traders, including Peter Brandt, Tone Vays, and others, are expecting a correction, that is overdue.

Source: TradingView

In the above chart, the way the price of BTC is moving suggests the possibility of the formation of a double top. However, the pattern is only confirmed after the price breaks the lowest resistance, i.e., $7,529. After which, the price will decline quickly into a correction that is being expected by most of the traders in the crypto space.



There is however a scenario where the price might just take off from here since it’s is undergoing a sideways movement, which can also be treated as an accumulation phase.

Conclusion

Crypto Twitter is quite bullish on Bitcoin and expects it to continue the rally, however, technical analysts and traders are awaiting a correction. According to Tone Vays, the price of Bitcoin will reach $4,500 before proceeding to a bull rally; Peter Brandt is also awaiting a pullback. No matter the outcome, it is better to tread carefully or stick to stacking sats.





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