Bitcoin’s value has fallen around 14% since its most recent high, and other major cryptos have followed suit and started an upward trend.
Bitcoin’s price hovered around $ 57,000 on Thursday, its lowest level since mid-October after falling just below $ 56,000 the day before.
So far this month, BTC is down 6% in value, leaving investors unsure of how deep the decline can go. My perspective as PR chief of a major crypto exchange allows me to see the market from the inside and what is happening today is very similar to what has happened in the past. In my opinion, this is just a retreat as Bitcoin gains power before making its next leap to new highs.
However, the price of Bitcoin has fallen dramatically in the past few weeks from its high of nearly $ 69,000 earlier this month, which begs the question of why the previous correction took less time and was not as severe.
The collapse in crypto prices can be attributed to several factors. Among them is the Securities and Exchange Commission (SEC), which is opposed to a Bitcoin ETF that would likely pour billions of dollars into the cryptocurrency market.
In addition, China is stepping up its influence on Bitcoin mining, saying it will consider “penalty electricity prices” on some crypto mines as part of its next phase of raid.
In related news, U.S. President Joe Biden signed a $ 1.2 trillion infrastructure bill last week that contains provisions that could have tax implications for crypto investors.
I also believe that increasing selling pressure and profit taking are the other factors. We are experiencing the natural cycle of crypto. Whenever assets hit record highs, people sell their assets. However, large sales can result in depreciation in value.
Cryptocurrencies have also been hit by a strengthening dollar, which is always a negative factor.
Ned Segal, Twitter’s CFO, also made negative comments about the cryptocurrency, which may have affected the market. In his opinion, it is not advisable to invest any cash in crypto assets at this time.
So it comes as no surprise that the Crypto Fear & Greed Index shows that market sentiment, which was neutral last week, is now in the “fear” range with a score of 32/100 at the time of writing.
However, there is no reason to be surprised by Bitcoin’s volatility, considering that its value has grown steadily over time.
It seems like Bitcoin is on its way back to new price records. However, while we are seeing some signs of recovery, it is too early to speak of a full-blown uptrend.
The Average Directional Index (ADX) which measures trend strength is currently at 13.26, indicating a weak trend. I think the cops are too tired and need some time to recover and consolidate.
The next level of resistance, in my opinion, is $ 60,000. After BTC price breaks it, we can expect accelerated growth and new highs.
Several investment firms began offering crypto to clients, including Goldman Sachs, JPMorgan Chase, and Wells Fargo. Given the top cryptocurrency developments such as the adoption of Bitcoin as legal tender in El Salvador, the launch of the first Bitcoin futures ETF, and the addition of Bitcoin reserves to their balance sheets by Tesla and MicroStrategy, it is very likely that the Crypto introduced the price increases for Bitcoin and other important coins.
For the past 30 days, the Mars Space X (MPX) coin has been the top performer with a staggering monthly gain of 1,447,841.08%. At the time of writing, it was trading at $ 0.000007489, up 460% in one day. MPX is a cryptocurrency that aims to fund Elon Musk’s Mars project.
Source: Source: CoinMarketCap
Dogebonk (DOBO), a token on Binance Smart Chain (BSC) with deflationary properties and automatic revenue generation, was the second best altcoin and posted a 11,823.12% monthly profit. It was last traded at $ 0.0000003291, down 8.7% in 24 hours.
Solar Energy (SEG), a deflationary BEP20 token from Binance Smart Chain used to build photovoltaic power plants in Brazil, was the third biggest winner over the past 30 days with a monthly gain of 12,431.32%. However, in the past 24 hours it was down 74.70% to $ 0.0008315.
Coin to the Fish (CTFT) was the fourth top gainer and marked a 9,131.47% gain compared to the previous month. Last check, it was traded at $ 1.40, until 85.70%% in 24 hours.
Please note that this article was completed on Tuesday and the situation may have changed since then. This material first appeared on Cointelegraph.
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