Today's day began for investors definitely not with coffee, but with a terrifying red color that swept the entire cryptocurrency market.
Escape from a sinking ship
The crypto exchanges, meanwhile, received over 30,000 Bitcoins, a record high in recent years. Of this amount, about 26,000 BTC went to the Binance crypto exchange. At the same time, only 146 Bitcoins were released from Coinbase. These numbers began to resemble Black Thursday in March 2020, when BTC plummeted by a quarter.
The outflow of funds of depositors from investment products in anticipation of the correction of the main cryptocurrency broke the $98 million mark. According to CoinShares, such an anti-record was last recorded in May 2019 at $19 million, and the last maximum outflow of funds occurred in October 2020.
However, such deplorable data does not mean that all users have decided to "exit" from cryptocurrencies. Most investors simply chose to sell their BTC in favor of altcoins.
Bitcoin fell below the 20-week exponential moving average (20-WMA) for the first time since late winter 2020. This was a good signal for the bears and a wake-up call for the bulls.
Experts believe that the reason for the breakthrough of 20-WMA is the general panic on the market. One of the significant factors was named Elon Musk, who saw Bitcoin as an "environmental threat" a few months after Tesla invested $1.5 billion in the main cryptocurrency.
Based on the fractals on the chart, it can be assumed that Bitcoin is expected to fall further, all the way down to the 50-week simple moving average (represented as a blue wave in the chart above). Fractal 2 demonstrates well that BTC maintained support above the 50-WMA and then crashed down amid FUD. A similar situation happened with Fractal 1.
Amid the precipitous decline, “optimistic” traders are wondering if the 200-WMA (about 12,800) will be the next target for the main cryptocurrency after falling below the $30,000 level.
Institutionals remain calm
Despite the not-so-cheerful picture in the market this week, big investors like JPMorgan, Goldman Sachs, and Morgan Stanley see no cause for concern and continue to view Bitcoin as a great anti-inflation tool. Some of them may even be investing even more in the bear market.
Mike Novogratz also expressed his opinion on the current situation, saying that in terms of an annualised rate, Bitcoin is still a 32% gain. According to him, the current correction is insignificant and does not in any way affect the adoption of the crypto industry and the blockchain by both large organizations and the interest from private investors.
After falling to a minimum of $30,101 over the past 24 hours, Bitcoin has recovered slightly and is now trading at $37,800 on Binance. Unfortunately, the fall of the “ringleader” and altcoins did not pass by.
So, ETH “dipped” in 24 hours by 20.76%, BNB by 27.06%, DOGE by 19.98%, XRP by 24.10%, and ADA and DOT by 19.33% and 32.09%, respectively.
Will small investors be able to follow the lead of the institutions, staying calm even when the market is “on fire”?
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