China recently restated its position against cryptocurrencies, which may have negatively affected the price of Bitcoin. Although the correction returned the price of BTC to the critical support at USD 56,000, the bulls have defended it.
Multiple reasons could have made the price of Bitcoin fall in the last week. However, no crucial factor is permanently damaging the trend that the pioneering cryptocurrency has had. In other words, it may simply be a setback due to the technical scenario observed in the price action.
Bitcoin recently pulled back from its all-time high of USD 69,000 to USD 55,600, according to Binance. That represents a significant loss of 15% in the last two weeks after the sale of 1,500 BTC. The cryptocurrency is trading at around USD 59,290 and has lost 8.3% in the past 24 hours, according to CoinGecko.
The Bearish Triggers Leading the Price of Bitcoin to Crash
A few days ago, China restated its position against decentralized cryptocurrencies like Bitcoin. That fact could have been one of the reasons that negatively affected the price of the crypto asset. However, that did not affect the great interest from whales much since sales have continued expanding so far.
Even when the price of Bitcoin hit its all-time high of USD 69,000, sales remained low despite the outflow of 1,500 BTC. In addition, the holders buying in the past 12 months and after the ATH of 2017 have not yet taken profits.
Furthermore, old wallets taking part of their profits made the sales during the last days. However, diamond hands will continue buying the dips.
It was no surprise that a market crash would approach due to the technical scenario of BTC. However, the abovementioned facts accelerated the downward slide in the price of the cryptocurrency.
Nobody Knows What to Expect From Bitcoin in the Short Term
There was tension in the market due to the correction that returned the price of BTC to critical support. Analysts like John Wick feared there would be a new wave of sales up to USD 50,000, but the price has gone back above USD 58,843.
The daily technical scenario has not been entirely negative since traders defended the abovementioned support at USD 56,000. That is in line with the upper margin of the ENV channels and close to the 100 EMA. For that reason, it may be best to monitor that level when they take positions to the upside.
Furthermore, the RSI is below 50 points, at 38, showing the high wave of sales generated. However, it represents an opportunity to invest at lower prices in turn.
When the price of Bitcoin pulls back, multiple whales and holders take advantage of the opportunity to invest millions of US dollars. The wallets accumulating the most BTC coins produced those purchases. Some wallets have bought 207 BTC, 484 BTC, 700 BTC, 1,123 BTC, and 1,647 BTC, respectively.
By Alexander Salazar
