After the Bitcoin price has grown strongly recently and hit an all-time high last week, the price started to fall on Sunday
After the Bitcoin price has grown strongly recently and hit an all-time high last week, the price started falling on Sunday (Feb 21st) and the decline continued throughout Monday, sending the coin dropping to $45,000 losing more than $13,000, then starting to recover. On Tuesday evening, the most popular cryptocurrency is back near the $50,000 level.
While the recovery in the cryptocurrency market is a welcome sight for bullish investors, bitcoin price is still finding resistance above $50,000 and this level has not been confirmed as support.
Bitcoin Retreats From Highs Near $60,000
Bitcoin price reached an all-time high on Saturday (20 February) as it surged to $58,400 approaching the next massive resistance level at $60,000, but the coin failed to break through the resistance level, as excessive selling overcame the depreciating coin.
The oversold continued on Monday causing the price to crash further which eventually brought Bitcoin back to $45,000, while this is still quite high compared to the coin's value over the past few years, it is a drop of $13,000.
Fortunately, the leading coin started to recover on Tuesday, first rising to $49,600, followed by another correction to $45,500, after which, Bitcoin rose again to trade below $50,000.
At the moment, Bitcoin is experiencing strong fluctuations that will likely continue for some time, but it seems that the excessive selling is over, and the currency may be ready to continue rising again.
Factors that contributed to the decline of the leading digital currency
The major decline of the leading cryptocurrency is due to many factors combined among them, the appetite of many to take profits after the successive record highs of the currency, and strong resistance usually rejects the resistance price, the recent news is also likely to be positive but its impact is negative on the price.
The only thing that can be considered negative is the recent statement by investor “Michael Perry” who said that the government may try to crush Bitcoin, as he believes that the government may be concerned about its currency and that it will make an actual effort to destroy it, these allegations proved by the new US Treasury Secretary “Janet Yellen.” appointed by President Biden, who has continued to claim that Bitcoin is highly ineffective and highly speculative.
However, it was not entirely bad, with many others saying that Bitcoin is not a threat to the US dollar and the US economy like Federal Reserve Chairman James Bullard who said that, but he also stated his lack of optimism about the future of the cryptocurrency.
Many analysts and experts are optimistic about the future of Bitcoin, as they expect the leading currency to rise and reach new highs, and some even expected its price to reach $ 200,000, but before that, some deep corrections are expected, and this is indeed what is happening now, after the currency’s record rise It saw a strong correction for several days and then it ended and the currency recovered again.