The price of bitcoin fell below $ 29,000 tonight. Having reached this point, the cryptocurrency actually lost the entire gain in 2021, but was able to partially win back positions and is again trading above $ 31,000 at the time of publication.
The fall for the week is 20%, and from high to low is about 30%. Bitcoin had to deal with such corrections many times during the 2017 bull rally, but it was the first in the current cycle. The decline for the session on Thursday reached 13%, which was the largest value since the March collapse, when in one day Bitcoin lost 39% of value.
The depth and speed of the fall strengthened the margin positions. According to the Bybt service, the volume of liquidations in the market as a whole amounted to $ 1.7 billion. On OKEx, for example, among the leading traders there were 2.5 times more long positions than short ones. On January 10, when, after a prolonged rally, Bitcoin first decided to change growth to decline, the volume of liquidations reached $ 2.5 billion.
“This level looks very vulnerable. A dip below it is bad news in the short term for bitcoin and cryptocurrencies in general, said Craig Earlam, senior analyst at Oanda Europe. “I wouldn’t be surprised if we see testing $ 20,000 in the not too distant future.”
At the same time, bulls do not lose hope to take the initiative into their own hands.
“Bitcoin’s behavior is similar to May-June 2017, when the price was in the $ 3,000-2,000 range before breaking higher,” said Mike McGlone, an analyst at Bloomberg.
“You know what to do,” writes Grayscale founder Barry Silbert, recalling his January 8 message when he was waiting for a drop to $ 30,000 for the opportunity to increase investment.
“I would have preferred a major base to form and the price to drop a little lower. The stronger the pullback, the larger the base and, therefore, the higher the likelihood of Bitcoin’s rise to $ 100,000 in 2021, ”says one analyst.
Along with Bitcoin, altcoins began to fall, and the segment’s capitalization in 24 hours decreased by $ 150 billion. So, Ethereum fell by 10% and is traded at about $ 1,165. A comparable drop is shown by Bitcoin Cash, Cardano and Monero. Tezos holds the best position in the upper part of the market – at the end of the last day it remains in a slight plus.