Crypto Crash Sends Shockwaves Through Market: Why Is Bitcoin Down and Is the Bull Run Over?
Why is Bitcoin down? As the crypto crash rocks the market, Bitcoin bulls are slowing down. Is the bull run over? Will Bitcoin price hit 100k?
Is the Bitcoin
PriceTrading volume in 24hLast 7d price movement
and crypto rally over? It is a question everyone wants to know.
After three weeks of gains, Bitcoin prices stalled over the weekend before collapsing on Monday and Tuesday. Two days of losses later, the coin plunged to as low as $90,700 yesterday.
Bitcoin Bulls Slowing Down: What’s Going on With Crypto?
There are now widespread concerns about whether bulls are running out of steam and whether BTC has what it takes to break $100,000, a psychological round number everyone is closely watching.
Prices have since recovered, bouncing from yesterday’s lows earlier today, retesting $93,700.
Will BTC bulls and use the Asian session’s gains as an anchor?
From the daily chart, the path of least resistance is still northwards.
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It is up nearly 30% from March highs, firm, and buyers are confident that the leg up will continue.
The problem is that there are red flags that may signal buyers’ momentum fizzling and the start of a correction.
After the consolidation last week, the crash on Monday printed an engulfing bar. Yesterday’s losses confirmed bears, pointing to weakness.
If prices fall below $90,000 today, Bitcoin can quickly sink to the $85,000 —$80,000 zone.
Conversely, rejection of lower prices, and the final close above last week’s range may be the start of , lifting Bitcoin above $100,000 to $150,000 in the coming weeks.
DISCOVER:
Short-Term Holders Are Taking Quick Fire Profit
Market data from CryptoQuant that holders could be cashing in and taking profits.
For example, the Bitcoin profit/loss ratio is at an 8-month high.
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As holders take profit, prices could be pressured, accelerating the dump below yesterday’s lows.
So far, over $60 billion worth of BTC has been moved as long—and short-term holders profit from the movement.
The risk of more losses has spooked some short-term holders.
One analyst noted that in the past 24 hours, 54,600 BTC were sent to top exchanges like Binance and Coinbase at a loss.
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Despite the sell-off, the analyst remains confident.
He said the uptrend remains and that corrections, seen over the last two days, are natural and expected after recent gains.
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Is The Bull Run Over? Geopolitical and Macro Factors To Watch
Interestingly, as Bitcoin drops, there is good progress from a geopolitical standpoint.
Recently, outgoing President Joe Biden said the United States will mediate the Lebanon-Israel conflict amid the humanitarian crisis in the Middle East.
Hints of a possible ceasefire have reduced the demand for Bitcoin as a safe haven.
At the same time, the USD is strengthening, as evidenced by gains in the USD Index. Since October, the greenback has added nearly 7% versus a basket of currencies, including the Euro and GBP.
Traders also watch whether institutions will flow back and buy more spot Bitcoin ETF shares.
According to Soso Value, over $122 million worth of shares were redeemed yesterday on November 26.
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The largest issuer, BlackRock’s IBIT, didn’t see any inflow, pointing to possible apprehension by institutions.
