The price of Bitcoin has recently dived below an important support level yet financial experts consider that this correction is a build-up for stable growth.
Bitcoin as well as the larger cryptocurrency sector has collectively dropped on 22nd April. As a result, there was a strong sell-off that resulted in a further BTC price decline to $48,000. Quantitative analysts find this drop a relief as PlanB was concerned over inorganic surge.
Bitcoin Price Slide Indicates Positive Correction
There are several reasons causing the price decline including an excess futures market along with heavy selling to medium-size whales from the smaller ones. Apart from the whales’ action, Joe Biden, US President, proposal of increasing capital gains tax to $1 million annually is the biggest factor.
According to the reports of TradingView and Cointelegraph Markets, reveals strong selling wave leading to a price drop below the support level of $50,000. On 23rd April. The price dived to a $47,500 low before some brave buyers helped driving it up to $49,000.
This breakdown indicates a drawdown of 25% from the latest all-time high of early March. Micah Spruill, head investment officer, and managing partner of S2F Capital stated that this sell-off seems to be pinning down BTC price below the all-important $50,000 mark.
Ben Lilly, the co-founder of Jarvis Labs, explains that many traders have been profiting from the ‘buying in the dip’. Consequently, the rapid sell-off adversely hit the prices and they started falling at an exponentially rapid pace.
Ether has also plummeted by 12% from its $2,640 record high. DOGE and XRP were hit the worst with a 20% price decline. The entire market capitalization of the crypto market at present is $1.862 trillion with BTC having a 50.7% dominance rate.
