Bitcoin’s marvelous rally of $ 13,800 ended with a sharp decline yesterday, and this move was recorded as the hardest drop in a month.
The biggest cryptocurrency’s rise seems to have ended with a sharp downward movement of 3.1 percent yesterday. After the decline of Bitcoin yesterday, some altcoins such as Litecoin and Monero have also adjusted to this trend.
Speaking to Bloomberg, Edward Moya, Oanda’s senior market analyst, stated that panic sales were behind the decline:
“The crowd, who saw that gold and Bitcoin fell in this trade period, when the risk was not very popular, turned to panic sales”
BTC, which rose to $ 13857 on Wednesday, finally rose to this level in June 2019. Some charting experts, on the other hand, state that a double peak formation, which may be a bearish indicator, may occur, and that this drop, which may come after the 14-day relative strength index measurement, which is a sign of overbought Bitcoin, exceeds 70, can breathe BTC.
The critical level is 14 thousand dollars.
Moya states that the 14 thousand level is an important threshold and that he thinks that if this figure is exceeded, a much harder rise may come.
Until yesterday’s drop, Bitcoin had surged roughly 15 percent since last week. In this move of the biggest cryptocurrency, the online payment giant PayPal’s announcement that it will open the crypto option to its customers had a big impact.
Coinage and inflation …
Bitcoin advocates, on the other hand, say that in the long run, the biggest cryptocurrency will make a profit. In particular, the constantly increasing money printing policies of banks and the idea that the increase in inflation day by day will provide serious benefits to cryptocurrencies, especially Bitcoin.
“There are not many options other than a price increase”
Bloomberg strategist Mike McGlone said, “Something unexpected must happen in order to stop this trend of Bitcoin and its ever-increasing adaptation to being a storage tool like gold. Other than that, there are not many options other than the increase in price, ”he said.