Friday was a terrible day for bitcoin as its prices keep declining all the time. During the afternoon, bitcoin prices went from $57,000-$53,000, which was a very drastic change of events. However, Saturday was no less than a doomsday for this most popular bitcoin. The significant fall in bitcoin prices went down from the 50,000 threshold level, and it is the lowest price after October. On the morning of Saturday, bitcoin declined as low as $42,100 after a price drop of $9000 within a short duration of time of three hours only. On Friday, bitcoin was as high as $57,500, and now, it decreased by almost 27%. Such a drastic fall in the prices left all the investors in vain. Everyone is worried about the actions of bitcoin in future; some investors are looking at it as an opportunity to make more profit.
There is barely anything that can explain the movement of bitcoin at this point. Also, the lower degree of liquidity in people’s eyes makes bitcoin even riskier. Therefore, they decided to withdraw their investments from bitcoin, making it very volatile. However, there is one positive action in the cryptocurrency world. El Salvador, which accepted bitcoin as a legal tender, started to purchase the dip. Following the purchases, the President of El Salvador announced bitcoin, saying that the country has purchased 150 BTC for $48,670.The president made this announcement by its bitcoin city project. It wants to show the people that bitcoins can be a future for every country experiencing a downfall in its economy.
From the graphical point of view, there are specific critical points at which this fall is indicated. The main reason behind the collapse of bitcoin on Friday is nothing else but some technical consequences. Also, these consequences point towards the key down signals which make sure that bitcoin is no longer incapacity to recover as soon as expected. Also, now, the wealth matrix is standing at its hundred days moving average below. However, it has a very negative signal among the investors, and therefore, they are liquid find their digital assets. Now, the appellant in bitcoin is lower than ever before since July 20, 2021. When the bitcoin has gone below the significant threshold of $50,000, it is a clear signal that it will enter a bearish market face soon. The last phase at which bitcoin will stand is 200 day moving average of $46,270
Find here : Advantages and Disadvantages of Bitcoin and Cryptocurrency
It is essential to note that it is not only bitcoin that is falling, but other cryptocurrencies also experienced the pressure. Some of the most popular cryptocurrencies decreased, and Ethereum stood at $3875.It is a 15% decrease in the price of this cryptocurrency over the time duration of 24 hours only. Solana is also a popular cryptocurrency and is used across the globe experience. A price decline of 18% would have a very drastic turn of events. The CEO of CEC Capital says that he has never seen such a drastic downfall in ETH prices. There was a significant price of ETH standing at 4000, which says that now the market is abruptly lower than ever before. Also, according to the data triggered by a cryptocurrency trading platform, the fall in bitcoin prices triggered around $600 million bitcoins future positions. Also, there was a sale of 1500 bitcoins within one hour when the prices fell.
According to research published on the OI sustainability of bitcoin stood at 3,65,000 bitcoins. The time between these holdings is one month, which is very unexpected for cryptocurrency investors. Also, it shows that the market is currently facing a very oversaturated leverage. Therefore, you can provide investors with an opportunity to get the right price for their cryptocurrencies if they want to sell them. However, for those looking forward to purchasing a bitcoin, the time is still to come as the prices are expected to fall further.
Also, the recent fall in prices of different cryptocurrencies came after the news of the Omicron variant. Furthermore, the new COVID-19 variant in South Africa is now spreading in different countries worldwide. Furthermore, due to the worry associated with the new Covid virus, the world sees another pandemic coming over. Therefore, some countries are expected to impose strict lockdown soon, and the stock market can experience a hit because of it. Therefore, having a positive outlook on cryptocurrencies is not the best thing for investors. Some huge players in the market are collecting the dip with a future expectation of increasing the prices of BTC.