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Saturday, April 10, 2021

Bitcoin Crash: Price Falls To $17,950; Shows $1000+ Correction

A recent Bitcoin crash showed an intense correction of more than $1000. The $19,450 high plunged down to $17,200 after which it stabilized at $17,950. Bitcoin was looking at a steady rise in 2020. When entire economies were shut and the stock market was vulnerable, this cryptocurrency was on the rise. Bitcoin prices shot up to $19,450 in November, 2020. But the high did not remain for long.

Bitcoin Crash Predicted By Analysts

Bitcoin was smoothly racing to replace the all-time high record of $20,000 by the end of 2020. But the strong Bitcoin crash even affected the market cap that currently stands at $332.19 billion.

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The Bitcoin price hikes made several analysts warn off severe correction phases. Even BTC bulls like Brian Kelly and Tone Vays suggested that there will be A Bitcoin crash soon. However, the correction did not stoop as low as they had imagined. Yesterday, in a podcast show, Vays talked about his prediction that the Bitcoin crash will occur with about $14,000 correction. Some analysts also warned of a price plunge as well. But as per the recent Bitcoin crash metrics, the price decline is likely to be lenient.

BTC Exchange Volume Increased After Bitcoin Crash

Bitcoin Crash
Bitcoin Crash

The founder of onchain analysis, Ki Young Ju recently tweeted that the BTC exchange inflow mean has increased rapidly. He further added that this suggests BTC whales have deposited Bitcoins to major exchanges following the Bitcoin crash. However, this tweet ended in a note saying that long-term chain-analysis suggests that Bitcoin continues to have buying pressure and BTC prices are likely to cross the $20,000 milestone in a few days.

The Bitcoin crash might have been influenced by the new regulations brought in by Steven Mnuchin, US Treasury Secretary through self-hosted cryptocurrency wallets. Brian Armstrong, Coinbase CEO mentions in a statement that if the regulations brought in by the state-backed crypto-wallets are executed, the Bitcoin market is bound to suffer from a serious setback.

Long-Term Looks Bullish For Bitcoin Market

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On the other hand, crypto-analysis firms like Santiment look at the positive side of the Bitcoin crash. They continue to draw bullish indicators in the long-term. Although their metrics point towards a short-term correction point as well. The Bitmex funding rate also remains in the positive.

This is precisely what is happening differently than all the other times, crypto-prices have faced such a strong correction. In the past, an intense correction was followed by a sell-off of all long positions. Liquidation resulted in the price decline. This happened when Bitcoin rose to $20,000. Santiment warns that prices can grow more after the Bitcoin crash. However, traders need to be more vigilant.

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