On 23.04.2021, the quotation of the main cryptocurrency on the Binance exchange fell to 47.5 thousand dollars. In comparison with the previous day, the price decreased by 12%. Such a decrease led to 3.7 billion losses of cryptocurrency exchange clients. In total, positions of about 600,000 traders were closed, one of them had losses of $11.3 million.
According to N. Soshnikov, head of the cryptocurrency exchange service Alfacash, there are many reasons for this drop. First of all, the decline in quotations has to do with the willingness of U.S. regulators to start controlling the digital money market more strictly. Also, many crypto-enthusiasts were disappointed by the direct listing of Coinbase securities on Nasdaq (although the results exceed the reference value of the exchange). The situation was also affected by power outages in Chinese mining regions, resulting in a drop in the Bitcoin network’s hash rate.
The start to the beginning of a large-scale correction was the news about Joe Biden’s intentions to increase the capital gains tax for the rich by 2 times. Analysts say that U.S. investors will start declaring income now so as not to lose half of their profits in the event of a rate hike. Traders have been closely watching the signals for bitcoin rate moves, so much news has jerked the situation in the digital money market.
“I see this pullback as a technical correction due to long positions with excess leverage. Fundamentals are still strong. After the market cools down, $/BTC will rise in the next few weeks,” CryptoQuant CEO Ki Yong Ju wrote on Twitter.
The current drop indicates a natural transition to a bearish phase. The price has fallen below the 50,000 support level formed after the March correction. This indicates a likely change in trends. A historical high in bitcoin prices was reached, but the growth stopped after that. Traders pay little attention to positive news, but sensitivity to negative information is very high.
It is important to keep a close eye on the 44,000 level, experts say. If there are few buyers at this rate, the mark of 30,000 will become a landmark, standing on the edge of another depression of the crypto market. Experts suggest that the price of Bitcoin could fall to $30,000 if the 45,000 level is overcome soon.
There are no prerequisites for the start of a prolonged correction so far. Analysts consider the current situation to be “working. The experts are confident that now there is an accumulation period, which will be followed by new growth. Experts predict that bitcoin quotes may fall below $47,000, but after a few weeks, their price will be within $50,000.