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October 4, 2022
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Why is Bitcoin falling and where will it go?

Bitcoin spiked a new ATH over the weekend

Today the price of Bitcoin is falling. Because?

To begin with, a new historic high of more than $ 58,000 was reached yesterday, so there is nothing unusual about the fact that the upward trend has stopped today. On the contrary, a correction is absolutely normal after such a large and sudden increase.

In addition, the price had been rising almost continuously for at least a week.

Today, after yesterday’s $ 58,000 high, has dropped to around $ 53,000 for the time being, that is, losing about 8.5% in one day of its highs.

He did something similar between February 9th and 11th, when he dropped about 8% from over $ 49,000 to just over $ 44,000 in a few days.

So, for now, today’s loss is not at all uncommon, especially since it continues to reach an extremely high peak.

For example, between January 29 and 30, the price rose 18% in one day, from $ 32,000 to $ 38,000, and fell 13% the next day back to $ 33,000.

In other words, today’s downturn can be described as physiological for the time being, and it should not be due to any underlying reason or any fundamental failure.

In addition, according to several analysts, the rise of the past few weeks has caused the price of Bitcoin to rise sharply. Even Elon Musk tweeted on Saturday that he thought the price of BTC and ETH was “high”:

“That said, BTC and ETH look tall lol”

On Saturday, February 20, Bitcoin’s price fluctuated between $ 54,600 and $ 57,500, therefore, in line with current levels.

Bitcoin price drop according to experts

For example, according to ExoAlpha CIO David Lifchitz, there may be a correction of up to 15% before the BTC price can rise again and reach new highs.

In that case, it can drop to less than $ 50,000.

According to eToro analyst Simon Peters, a series of technical indicators, such as RSI and Stochastics, indicate that Bitcoin is overbought at the moment, so a setback may occur soon.

LMAX Digital currency strategist Joel Kruger says the setback may extend to the $ 42,000 support, while Lifchitz speculates that if he fails to rely on the $ 50,000 support, it could drop to $ 40,000, or even $ 30,000, although it seems to be a much less likely level.

According to the head of trading at Crypto Finance AG, Patrick Heusser, $ 52,000 would be the most important support, and an additional correction would seem less likely, since the derivatives market is not showing an excessive rise.

In other words, there would be no real reason for the current correction, other than a recovery from the $ 58,000 ceiling, which may be a little high at the moment.

Source: Cryptonomist

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