The Next Bitcoin Major Sale: What Could Push BTC’s Price To The Bottom?
The fall of Bitcoin below $9,000 was a powerful blow to the crypto asset and seriously shook it, and so relatively weak positions over the past month. A violent reaction immediately followed among the participants of the cryptocurrency market who did not expect such a turn of events. Buyers immediately activated and were able to raise the price of Bitcoin to $9,200. But the data remains disappointing: falling below the support level of $9,400 may not turn out well for Bitcoin.
A precarious situation is also observed in the altcoin market. Derivative crypto assets are more fragile for changing market conditions and are largely dependent on the price movement of Bitcoin. Leading altcoins this week showed a decline of 9-17%.
What factors can trigger a further decline in Bitcoin?
After halving, the flagship cryptocurrency was very sluggish and unstable compared to the leading altcoins. The upcoming macroeconomic situation may further shake the market position of Bitcoin. Many experts are already predicting the onset of the second wave of the COVID-19 pandemic, rising inflation, and continued decline in the global economy.
In these traditional conditions, the market is already under pressure from traders and investors. Cryptanalysts suggest that the financial market may repeat the events of March 2020, when all assets collapsed. Massive sale of assets. which came after Black Thursday also hit Bitcoin very much. The collapse of the flagship cryptocurrency not only negatively affected its price but also significantly reduced the level of confidence in digital assets.
Likely, the bears will not stop at the level of $9,000, under their pressure, the price of Bitcoin can test the next lower support levels shortly. It is still unknown exactly which direction Bitcoin price will go because last week one of the largest whales conducted a transaction worth more than $1.24 billion. This can both push the price of Bitcoin and lower it.
The reaction of major players to the market position of Bitcoin largely determines the actions of other market participants. A very revealing example is an event that is associated with Nassim Taleb. When the investor closed his Coinbase account, other users responded almost instantly and removed 22K BTC from the exchange (over $ 200 million).