Bitcoin had some investors and new holders freaking out the other day when it dropped in price significantly.
BTC saw a plunge by more than 20% in the past 24 hours, but now, the king coin is picking up steam slowly but surely again.
At the moment of writing this article, BTC is trading in the green, and the coin is priced at $35,704.92.
Bitcoin in the mainstream media
If back in 2020, Bitcoin was able to penetrate the mainstream media and everyone praised the king coin, the other day, they picked up the drop in price and started writing about investors who are losing faith in crypto.
Well, longtime crypto people know very well that what had happened the other day was nothing but a healthy correction following a long upwards trajectory, and there’s nothing to worry about.
The Bitcoin bull run just began, and institutional money, which is the main fuel, will continue to our into the crypto space.
Forbes just posted an interesting article, addressing some of the reasons for which BTC saw such a price drop.
They made sure to note that “The digital currency has experienced a meteoric rise over the last several months, rising from less than $3,900 in March to nearly $42,000 last week. By generating these gains, bitcoin has climbed close to 1,000% in under a year.”
“The market has been overbought for months,” said Jeff Dorman, chief investment officer of asset manager Arca, cited by Forbes.
He continued and said: “No matter what metric you look at, it was overextended (Fear & Greed Index, put skew, leverage, spot/futures basis, etc.).”
Jason Lau, COO of cryptocurrency exchange OKCoin, recently said the following:
“In recent weeks, exuberance around BTC breaching new ATHs caused many traders to become overly bullish.”
Chad Steinglass, head of trading at digital assets firm CrossTower, had this to say:
“In a market with high momentum, selling can beget selling just as easily as buying can lead to more buying.”
Anyway, this massive correction did not come as a surprise, and lots of experienced traders bought the dip the other day.
We suggest that you check out Forbes’ complete article to learn more details.
The post Bitcoin’s Recent Pullback: What Caused BTC’s Correction And What Does It Mean? first appeared on CryptoGazette – Cryptocurrency News.