Table of Contents
The flagship cryptocurrency Bitcoin has been on a roller coaster, in terms of its price. The crypto king was seen to be trading above $60K last year. However, a major price correction caused the price to drop as low as $30K.
Since then, the price of Bitcoin has not been fully or properly recovered. After surging as high as $40K recently, the price of Bitcoin reportedly dropped to $38K, leaving more than $700 million in liquidations in 24 hours.
The crypto enthusiasts and especially people interested in buying Bitcoin are left to wonder what could be the reason for this price action? Let’s find out more.
Meanwhile, if you are interested in buying crypto then make sure you choose one of the best Bitcoin exchanges.
You can also take a look at our margin trading guide if you want to start trading crypto.
As a novice trader, you can also opt for PrimeXBT Covesting. It allows beginners to copy the trades of experienced traders. Sign up with this link today.
[primexbt]
What Could Be the Reason for BTC’s Price Action?
In the past, there has been one reason or another that causes the price of Bitcoin or any other crypto asset to drop. However, this time around, crypto enthusiasts and analysts are unable to pinpoint any prominent news that could cause the price of Bitcoin to fall.
As per reports, the price of the flagship crypto asset has dropped 7.25% over the last 24 hours.
It is currently trading at $38,982 (at the time of writing). What has grabbed more attention from the crypto enthusiasts is that the price of BTC has fallen below the $40K price mark for the second time in two weeks.
Here is a graph by CoinMarketCap that shows the price movements of BTC over the last month.
Bitcoin is not the only digital asset in the market that has seen a drop in its price. All the major altcoins have seen a price drop at the moment, with the price of ADA dropping the most.
Here are details of some of the top altcoins.
- The price of the biggest altcoin Ethereum has dropped 8.81% over the last 24 hours (at the time of writing).
- The price of ADA has dropped 9.57% over the last 24 hours (at the time of writing).
- The price of Solana has dropped 8.96% over the last 24 hours (at the time of writing).
What Should Crypto Investors and Traders Know?
The crypto space has always been known to be volatile and unpredictable and people who have been in the crypto space for quite some time are familiar with it. However, digital assets, especially Bitcoin and Ethereum have a high value and significance even if their prices fluctuate from time to time.
At the moment, the flagship crypto asset is trading below a crucial support level, which was at $40,700. This has led analysts to determine that BTC could be bearish right now. However, people who are interested in buying BTC can still accumulate it, especially for their long-term portfolio.
Therefore, crypto traders looking to trade BTC should wait for the price to stabilize and in the meantime can learn about some popular trading strategies.
On the other hand, people who want to purchase digital currencies such as BTC or ETH can click on SwissBorg or Kraken (U.S. citizens).
[kraken]
