Bitcoin has shed a whopping $6,500 since the same time yesterday as it dumped to $29,000. The intraday high for BTC was $35,500 according to Tradingview.com, and it has currently reclaimed the $30k level but only just.
Bitcoin Corrects 30%
Since its all-time high of $42,000, Bitcoin has corrected 30% to current levels which is not uncommon when looking at previous market cycles. Corrections are healthy and need to occur however the speed at which things dump on crypto markets will have the uninitiated in a spin.
Bitcoin bulls such as RT’s Max Keiser are certainly not worried and will view this as a buying opportunity;
Buy these cheap sats y’all. I’m stackin hard! pic.twitter.com/f2VMyTVv7F
— Max Keiser (@maxkeiser) January 22, 2021
Technical analyst ‘Altcoin Sherpa’ said that a larger correction and formation of a base where the asset consolidates for a while is bullish for longer term gains.
“Personally, I would love for a big base to be formed and for price to go a bit lower. The bigger the pullback, the larger the base and thus a higher % chance of $BTC going to 100k+ in later 2021 IMO,”
The $30k zone must hold, however, and previous bounces have led to lower highs indicating that the correction is not over yet. A break below this level could see the asset retreat 40% which puts it back at the 25k level.
— Cheds (@BigCheds) January 22, 2021
Stock-to-flow model, ‘PlanB’, was unconcerned pointing out that his price model is still on track, even with a 30% correction.
“$31.5K bitcoin feels low compared to $40K … but did you really expect BTC price to front-run S2F model already? S2F model is right on track, like clockwork. Patience!”
Crypto Market Bloodbath
As expected the altcoin lemmings are following their big brother into the abyss. Total market capitalization has retreated by almost $150 billion over the past 24 hours and is currently around $870 billion according to Coingecko.
Double-digit dumps are across the board for the majority of the altcoins with Cardano, Bitcoin Cash, Chainlink, and Stellar getting whacked a little harder.