Is Bitcoin on the decline? Market panic is being dismissed by analysts as BTC sentiment remains ‘positive.’
This week, BITCOIN broke through the tumultuous 2021, setting a new all-time high and assisting worried investors. However, it has subsequently reverted to previous patterns, and is now back to where it was nearly a week ago.
BTC’s new all-time high was $68,622.63 (£51,344.48), which it attained on November 10. That is the highest price the token has attained since October 20, when it was available for $66,878.47 (£50,039.47) per unit. Although the cryptocurrency reached a record high yesterday, it has dropped to $65,167.01 (£48,758.93) in the previous 24 hours.
Bitcoin’s recent movement is a direct reaction to the financial condition in the United States, notably the stock market.
Following the release of the US consumer price index (CPI), which showed inflation climbing at its quickest rate since 1990, the market fell.
The report reverberated across the US financial markets, eventually affecting the bitcoin market.
According to Juan Pellicer, a blockchain expert at IntoTheBlock, the S&P 500 and Nasdaq “reacted adversely” to the announcement.
He then added cryptocurrency and reacted in the same way.
However, the reduction is unlikely to have a significant impact on Bitcoin, which remains popular.
Investors will try to “grow their holdings” on Wednesday, according to DailyFX analyst Nicholas Cawley.
“Wednesday’s dramatic sell-off in the cryptocurrency market served as a stark reminder – at least to short-term traders – that unpredictable price movements are always around the corner,” he said.
“After the release of the US inflation figures, which showed price pressures at a 30-year high, Bitcoin and Ethereum both reached new all-time highs.”
“Some have blamed the significant drop later in the session on suspicions that Evergrande, the ailing Chinese property behemoth, had skipped coupon payments on one of its dollar bonds, but there are conflicting reports on this.”
“Traders with a longer-term outlook on BTC and ETH may likely take advantage of the current sell-off to add to their positions, as sentiment remains bullish going forward.”
When the price of a cryptocurrency falls, it presents a potentially profitable opportunity for new or experienced buyers.
They can now buy new units at a lesser price before they rise again, thanks to the lower pricing.
Insiders refer to this tactic as “buying the dip.”
However, cryptocurrencies are still quite volatile, so it doesn’t always work out.
While analysts anticipate Bitcoin will eventually recoup its losses and surge above its current level, it might potentially crash.
It declined the last time after a surge. “Brinkwire News Summary.”