The Biggest Bitcoin Pull Back of 2021
Bitcoin suffered a significant price reversal to drop to a 3.5 months low of less than $42,212 as at the time of writing which is a 35% drop from the record highs of $64,880.
Chart analysts had warned of a pullback to $42,000 before a resumption of the broader bull run. Centralized exchanges registered a net Bitcoin inflow of over 35,000 BTC in the past five days, as noted by IntoTheBlock on Twitter. Investors typically move coins to exchanges when they intend to liquidate their holdings.
The selling pressure strengthened over the weekend with fears that Tesla may dump it’s Bitcoin holdings following the controversial tweets of Tesla CEO Elon Musk criticizing the energy levels required by Bitcoin though he later sent out a tweet in a bid to calm the situation saying Tesla do not intend to sell it’s Bitcoin holdings as such Bitcoin prices pushed towards the $45k region before dropping back again to the $43k region as at the time of writing.
Pullbacks of 30% is quite normal in Cryptocurrencies during bull run, We however remain confident the pull back is healthy for a sustained match towards a new ATH and unprecedented bull run I’m the Cryptocurrency history.
As at the time of writing, BTC is forming a wedge most likely … perfectly normal correction and healthy.” A wedge, in this case, is a bullish pattern in price charts.
Notwithstanding, there exist fears of possible US Federal Reserve policies aimed at controlling inflation, how this will affect the market remains to be seen but we can not ignore the fact that news from the US has always been impactful in the Cryptocurrency space.
More cautiously if the current support do not hold, we could be headed to $35k levels which ofcourse will affect the entire market and could see more Altcoins depreciating in price.
Bitcoin and other Cryptocurrencies have come to stay, yes the volatility is quite high and this is understandable given the nature of these digital assets but one must exercise caution and patience when dealing in these type of asset class, in the long term, we firmly believe these shake ups are healthy for a sustained match towards a new All time high for BTC and other digital assets. Remember to always do your own research before investing in any digital asset.