Why Is Bitcoin Price Down Again?

As of the fall of 2023, price jumps signaled the end of a long and harsh crypto winter. Investors, driven away by unsatisfactory price levels, were able to recoup a large share of the losses of the past bearish season with these bounces, and were once again positive about crypto as they began to hear the footsteps of the bull season. But unfortunately, while this uptrend gave investors hope that Bitcoin would push through record highs, the end of this rally was actually signaled as early as the close of last week.Market analysts such as CryptoQuant pointed out that more than half of the BTC supply in circulation was in profit taking and predicted the resulting pullbacks. Basing this hypothesis on historical examples of BTC’s behavior, CryptoQuant recalled a similar situation at the $69,000 level in Fall 2021. Underlining that the risk associated with profits increases in these situations, analysts emphasized the importance of protecting profits in scenarios that depend on investors losing enthusiasm and sell orders. I think investors listening to the analysts can rest easy. Indeed, the predicted end of the rally came and Bitcoin briefly fell below $41,000, dropping as much as 5% in a 24-hour period. In 20 minutes, BTC erased almost a week’s worth of gains, It fell from $43,357 to $40,659 and stabilized around $42,000. Although the Bullish Harami pattern observed on the December 10 BTC chart signaled a reversal in the bear trend, as of December 11, the leading cryptocurrency Bitcoin (BTC) welcomed the new week with an 8% drop to $40,000.  This serious drop not only hit market leaders such as BTC and ETH, but also the altcoins that depend on them. While this reversal of momentum brought a smile to the faces of traders who wondered if it was too late for the bull season and offered the option to buy low, some traders were left wondering again. Tired of sudden fluctuations and erased profits, investors, as always, are looking for an answer to the question of how long this decline will continue. It’s important to remember that Bitcoin’s decline, which has been on a steady upward trajectory over the past month, is a price adjustment and a functioning, healthy part of its upward trajectory. At $41,687 as of Dec. 12, BTC could be on the rise again in the near future if it maintains this price level, which has not fallen below $40,000. More By This Author:How Long Will We ‘Bear’ The Bear Market?