Bears need to be up to the bulls. The latter managed to defend the 30,000 USD despite the strong selling pressure which led to a major correction in the price of Bitcoin (BTC). BTC critics rejoice in bulls suffering, savvy bitcoiners speak of healthy pullback.
Cuban takes out the bubble
The total cryptocurrency market capitalization has fallen by over $ 200 billion as the price of Bitcoin plummeted to the $ 30,229 level and the price of altcoins was also undergoing major corrections.
The euphoria seen in the market soared as the price of the majority of altcoins declined by nearly 20% and the price of Bitcoin fell below the $ 40,000 support level on January 10, 2021.
Pressure to sell on the markets BTC rose significantly in less than 24 hours to the support level of $ 30,229.
This decline resulted in the liquidation of nearly $ 2.7 billion in futures contracts as the price of BTC went from $ 41,000 to $ 32,229.
The owner of Dallas maverick, Mark Cuban, has indicated – without surprise – that the crypto markets were similar to the internet bubble at the end of the 1990s.
A worrying speed: flash bull, flash bear
Other analysts, such as CEO of Celsius, Alex mashinsky, see this drop as a healthy correction.
For Mashinsky, Bitcoin could drop to $ 16,000 before resuming its upward path.
The CIO of ExoAlpha, David Lifchitz, also sees this retreat as a healthy move to purge the excess growth of the last 10 days leading up to it and allow Bitcoin to build a solid base towards the 50,000 USD.
Lifchitz Rather worried about how quickly bulls have run up to their ATH at the $ 42,000 level on some exchanges.
The range of motion Bitcoin doubled from December 2020 to January 2021. The traditional financial sector is also under pressure as the political situation in the United States continues to generate a climate of tension and uncertainty.
The main stock market indices such as S & P500, the Dow Jones and the NASDAQ all ended the day of January 12, 2021 in the red.
The bulls have since regained control of the markets in the short term. BTC even climbed above $ 36,000 on January 13, 2021. Institutionals would buy dips. Mark Cuban is banana commenting on the major correction in the price of many cryptos, but BTC could wipe that smile off his face by hitting $ 50,000.
Litecoin, welcome in the Silver Age