Big news from Yesterday’s crypto market
Bitcoin is a digital crypto-currency that has been in headlines whenever it makes all time highs and drastic correction done by the bitcoin. The markets of the world and of crypto-currencies work mainly on the fundamental and technical analysis. These fundamental and technical analyses have deep impact on the market. Bitcoin price passed ATH around 42000 USD and retraced back to 28000 USD. This massive fall in the price has certain reasons.
Why Bitcoin is falling?
Well this question has a lot of reasons. Let’s discuss few tangents of this depreciation in the price by taking consideration of technical and fundamental analyses.
US President Joe Biden’s nominee for Treasury Secretary
Janet Yellen is the nominee for the treasury secretary and her remarks has a deep impact on the market as well. The people and market mostly works on these big names and mark their words carefully. She said in press briefing as “Crypto-currencies are a particular concern. I think many are used — at least in a transaction sense — mainly for illicit financing. I think we really need to examine ways in which we can curtail their use and make sure that money laundering doesn’t occur through those channels,” and suggested that “lawmakers must curtail the use of crypto-currencies such as Bitcoin over concerns that they are being used for illegal activity.” It shows that the Biden’s government may prove detrimental for the crypto-market.
Bitcoin volatility is one of the other main reasons behind the fall in price. Looking at the previous history of the bitcoin, it is normal to have such deep correction in the price. Mostly, the price takes correction to make more sound movement in upward direction.
Investors are the most important people in any business and any bad statement from the powerful person that can impact the market shakes the market well. Investors take out their money within seconds and the market takes deep correction. Recent, dip in the price may also have this reason as well.
Jp Morgan statement
JPMorgan strategists John Normand and Federico Manicardi said that investors using BTC “as a portfolio diversifier are putting themselves at risk” as Bitcoin is more of a cyclical asset than a hedge.
Recent analysis of BTC
As per the Fibonacci tool, the market is testing the .618 level. And it may go down further from this point.
Bollinger bands indicator shows that the market is in downtrend as per the 4H time frame. The market is trying to pullback and continues its momentum.
The price of the btc has made the traders and investors forced to worry about their investment and trading. However, the experts know this correction is normal in the life of bitcoin and trading as well. The market cap is now $958 billion and btc dominance at 64%