The cryptocurrency market recently saw a huge spike in prices. Bitcoin, the leading cryptocurrency by market cap saw a rise of more than 10% in the past 7 days. Today on the other hand was a red day. The cryptocurrency market on an aggregate level lost around 4%. Most investors are already dreading their sudden “leap of faith” and are regretting buying in too soon. Why did the cryptocurrency market and specifically Bitcoin price crash?
Why was Bitcoin Price poised to Adjust?
Following an extended price hike, it was only natural for prices to slow down. In fact, Bitcoin price simply retraced back to a strong area, which is the 60-62K. Prices started to gain momentum back on the 30th of September 2021 when they reversed the downtrend. Following this reversal, prices kept increasing non-stop, without any breather in sight.
Looking at figure 1, we can clearly dismiss the “crash” conspiracy. This claim is ridiculous, as there are no solid technicals that prove a crash in Bitcoin prices.
Bitcoin Price Prediction – Will Bitcoin Prices Continue to Climb Higher?
Although it is a bit hard to predict future prices, one can always make educated guesses. For Bitcoin’s case, it is clear that prices are on an uptrend, without any sign of a reversal yet. Most analysts are predicting a Bitcoin Price of 100K within the next few months.
From another perspective, and talking about the current technicals, Bitcoin might adjust all the way towards USD 57,000 and still be considered on an uptrend. Plotting the Fibonacci Retracement in figure 2 shows a potential retracement of 38.2% towards the USD 56,939.
The Crypto Market at a Glance
In the past 24 hours, most cryptocurrencies lost in value and adjusted after the recent price hike. On the other hand, the biggest losers which are Telcoin, Fantom, and Axie Infinity barely lost respectively 8%, 7%, and 6%. If you think that’s too much, you should look at the top gainers ThorChain and The Graph that gained on that same day respectively 26% and 11%.
1- Bitcoin (BTC) : – 3.83 %
2- Ether (ETH) : – 2.20 %
3- Binance Coin (BNB): – 5.01 %
4- Cardano (ADA) : – 3.28 %
5- Tether (USDT) : 0 %
6- Solana (SOL) : + 10.30 % (surpassing XRP)
7- Ripple (XRP) : – 4.67 %
8- Polkadot (DOT): – 2.51 %
9- Dogecoin (DOGE) : – 3.79 % (surpassing USD Coin)
10- USD Coin (USDC) : + 0 %
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Rudy Fares
