Why Is the Price of Bitcoin (BTC) Declining? What Analysts Say?
On Nov 26, 2020
Bitcoin, the leading cryptocurrency, has skyrocketed in the past few days. But now, it seems to hesitate. Why is the BTC price falling? What do experts say? According to data from CoinMarketCap and TradingView, the price of Bitcoin, the largest cryptocurrency by market cap, fluctuated last night and suddenly dropped below $ 18,000.
2020 has been a stellar year for Bitcoin. In the last weeks, Bitcoin has managed to break the $ 17,000 level first, and then the $ 18,000 level. Just a few days ago, Bitcoin gave a signal of renewing its all-time high by surpassing $ 19,000. There is no denying that $19k is a crucial price level for Bitcoin. Therefore, this current price decline confused the crypto community. After showing the fastest growth of the year, the fall in Bitcoin was interpreted by analysts as a correction. The current price of the leading cryptocurrency is $17,197, and its market capitalization is $319 billion.
Crypto strategist and CEO at analytics firm CryptoQuant, Ki-Young Ju said the following about the recent decline in the cryptocurrency market.
“I think this is a correction before we break $20,000. Other long-term on-chain indicators like BTC and stablecoin reserve say the potential buying pressure still prevails so far.”
“Too many BTC whales on Coinbase. I am still long-term bullish, but we might face some corrections or sideways until whales become inactive on spot exchanges.”
What Analysts Say
Analysts believe that $ 20,000 is a significant level, so more consolidation is needed to gain sufficient momentum. Many analysts, including CNBC host Brian Kelly and investor Ton Weiss, who predicted the bitcoin price would drop to $ 14,000 on Thursday, had previously warned that the recent rally was associated with a period of consolidation.
JJ Cycles, another analyst in the field, stated that bitcoin fell 37% in 7 days, approaching its previous ATH. The analyst used the following statements:
The Overall Cryptocurrency Market in Decline
The global crypto market cap is $506.70B, a 12.11% decrease over the last day. Most other notable coins fell, too. During the past 24 hours, Ethereum fell by 14.72%; Bitcoin Cash fell by 18.12%; Chainlink by 18.59%; Litecoin fell by 15.02%, and Cardano fell by 19.14%.
The coming days will be crucial in understanding whether Bitcoin will finally continue to rally and whether the decline will be a short break.