Bitcoin’s single day recovery from the lows around $26,000 to beyond $31,000 raised hopes of the asset resuming with a strong uptrend. However, the fresh price slash in the early trading hours dragged the price back below $30,000. Additionally, the asset now displays some signs of weakness which may pave the way for the bear to dominate the rally for some more time ahead.
In such a case, where will the BTC price rally lead to?
BTC price witnessed a huge jump in its value during the past day’s trade and it may be in the wake of LUNA & UST being delisted from many exchanges. It is speculated that many jumped into BTC trade as the price rose beyond $30,000. However, as both the tokens resumed trade on most exchanges, people may have dumped BTC to accumulate LUNA. And hence a drastic spike in LUNA prices was witnessed which obviously does not seem natural.
Who are these people who are destabilising the market?
It is a known fact that many newcomers have jumped into the crypto space ever since the financial system showcased some weakness ever since the pandemic began. The adoption and exposure gained by the crypto space and mainly Bitcoin is immense. However, the people who entered here were not nurtured and hence panicked at every bearish trend. Moreover, they liquidated which dragged the price down, destabilizing the markets.
As per the report put up by the analyst, experienced holders with a holding history of more than a year have remained stable despite the current trembled condition. On the contrary, the newbies holding assets ranging from a month to 6 months have played and dumped on the asset heavily, shaking the markets to a large extent.
Therefore, as previously covered, Bitcoin’s recent bounce was speculated to be an interim one as the possibility of a dead cat bounce was at its peak. And hence the BTC price currently appears to have been following the pattern and is expected to hit the lower levels at $28,000 very soon.