BIG BITCOIN CRASH IS COMING!! (Was $40,000 The Top?) BIG NEWS! | Bitcoin News – Bitcoin Price

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check out previous videos. So today we'll be examining the big bitcoin crash
that might be coming, a lot of people don't see this coming, but of course, we
will be considering some analysis and you'll see for yourself why we think
a crash is imminent. There's also the big question of whether
40 K is the top for Bitcoin. And if there will be a big crash, then
it's 40 K, the maximum we're expecting at this time.

Let's find out. But before we do that, let's
catch up on recent events. All of these are pointers and indicators that
we need to consider before we predict the next Bitcoin movement. Bitcoin made a quick run for the
forty thousand level earlier this year. And there's been speculation that it may
even reach six figures this year. But of course, it won't
just continue on this run. There will be corrections, retracement and
even a possible massive dip. For now, most people are talking about the
rally that has seen the digital currency climb more than 700 percent from
a March 12th closing low. This may have been as a result of
increased demand from institutional corporates and more recently, increased retail investors actions.

In the last year, investors were attracted by the
prospect of quick gains in a world of ultra low yields and negative interest rates. And they're now in the Bitcoin
world looking for these gains. Some investors viewed Bitcoin as a
hedge against inflation amid enormous monetary stimulus aimed at battling the
economic devastation caused by covid-19. Market participants, though, are now warning
about an impending correction after that massive rally Bitcoin pulled on everyone.

Gavin Smith, the chief executive officer
of cryptocurrency consortium Pansori Group, said that though further growth seems to be certain,
investors should not expect this move to be in a straight line. He also said that the
reality is that Bitcoin is far from being a magic monetary, nor is it
free from downward price swings. In fact, we can expect dips as sharp
as twenty five percent at times as investors periodically withdraw profits. Bitcoin surge happened as the market cap
for the entire cryptocurrency sector topped one trillion dollars on Thursday,
according to data trackers. Last note, which provides insight on Lockshin
data, noted that retail interest in Bitcoin has increased in the last few weeks, with
a number of Bitcoin addresses or wallets holding at least some of the virtual currency
reaching an all time high of more than thirty three million. Let's talk about why
the price of Bitcoin makes such surprising drops.

One of the reasons
is because of Bitcoin Wale's. The reason for the drop can be partly
attributed to crypto whales who are capable of depositing large volumes of their Bitcoin holdings to
exchanges in order to cash in on Bitcoins record highs. Similar events happened with Bitcoin back in twenty
seventeen when there was a bull run, when whales contributed to a major shift in
the cryptocurrency value just by moving their assets to other platforms.

The block chain analytics firm into the Block
also showed that from November twenty fifth, the twenty sixth Bitcoin Wale's unloaded
ninety three thousand six hundred thirty bitcoins in different exchanges, this total to
over one point six billion dollars worth of bitcoins. Another report noted that the movement
of bitcoins out of OCS also played a role in this scenario. Users were disgruntled with the platform after
withdrawals were forbidden for weeks after Chinese authorities allegedly arrested one
of its key holders.

This resulted in an outflow of around
twenty nine thousand three hundred bitcoins from the platform, which was worth
around five hundred million dollars. CRYPTOCOCCUS data also shows that even the amount
of Teather held in wallets had dropped by ninety seven point six
percent within just a week. What this reflects is that users began
transferring their assets to a different exchange or their own called wallets. Cryptocurrency Cheongju explained that Anshan indicators
continue to reflect a strong buying pressure. This means that the bull market
is not ready to end anytime soon. However, he also noted that when the whales
are active on exchanges, the likelihood of Bitcoin's price going sideways or
down is also high here. Joe noted that there is a danger zone for
Bitcoin that users have to be wary about whenever they plan to hold new positions. Then again, many believe that the price drop was
to be expected and is in fact a good thing.

That's allowing Bitcoin to let out a
bit of steam before descends to dramatic new heights, especially since the price trend is
still similar to the pullbacks from before that range, around 20 percent in other
recorded bull runs in Bitcoins history. The drop has been accompanied by a
massive liquidation of multiple derivative positions amounting to almost two billion dollars. This led to what's called market overheating, which
is seen from the futures market being over leveraged. Basically, this meant that the
value of perpetual contracts has become much greater than the value of
Bitcoin and its underlying equity. Much of Bitcoin trading is so complex
and interwoven with sophisticated trading and institutional products such as futures leverage,
margin trades and decentralized finance protocols. A sudden slide in Bitcoin's price can
set off a chain reaction of automated responses executed by trading bots within
milliseconds, leading to an abrupt oversupply of bitcoin and a further steep drop in price. According to cryptocurrency analyst Joseph Young, when
the funding rate fell to 0.01 percent, it reflected the fact that Bitcoin
Perpetual's were oversold following the price drop of around three thousand dollars.

This supports the claim of other analysts that
there was indeed too much leverage in the market. Young added, however, that the price
of Bitcoin remained resilient at eighteen thousand dollars. Despite the overselling. Another possible cause for a drop
is the rumor about regulations. United States regulators have always had
a dysfunctional love hate relationship with Bitcoin. There are rumors circulating that the
US Treasury Department is planning to implement a mechanism where they will become
empowered to monitor the crypto wallets of users. Didn't help the Brian Armstrong CEO of
Coinbase publicly tweeted his concern and a lot of people started
selling the crypto assets. Also, there seems to be a lot of traders
who are impacting the market and they should not be underestimated either. They are certainly a large group of
battle hardened Bitcoin investors and modelers who are waiting patiently to recoup losses or maximize
their profit, that is, to sell their bitcoin at record high prices.

Bitcoin is still very volatile and anybody can
win in this game, savvy investors are aware of this. And I want
you to know this, too. As a result, when the price dips
sharply, people become anxious and start selling. While many Bitcoin holders may propagate the
unstoppable rise of the currency and predict near future highs totaling hundreds of thousands of
dollars in private, they might not be quite so optimistic. As the saying goes by,
the rumor sell the news. Predicting when the bull run for Bitcoin will end
is not quite certain because of a lot that is happening in the world
of present, such as the pandemic. The US presidential handover and
the dangerous potential regulatory fallout. It's nearly impossible to determine the next steps
of crypto whales and how are the existing positions in the market are going
to move until clear regulation also stops. Blatant market manipulation behavior will have to
accept that anything could happen to the price of Bitcoin before we decide to hold
new positions or get out of existing ones.

It's very important to understand that there are
many stakeholders in the market and then they each play a significant role
in the movement of Bitcoin. Prices don't be easily swayed by FAMO or
food, which means fear, uncertainty and doubt. Do your research and act accordingly. This chart is titled The Big Correction Chart
because it shows that this is a massive correction. It's different from what some have been
speculating that we're only in for a small correction. And the Bull
Run continues just shortly. Let's take a look at it together. This bigger correction as some couple
of smaller corrections within it. But we should not allow that to distract us. The focus should be on this bigger correction
because it has the potential to drive fear, uncertainty and doubt. This chart shows that in the long term we
expect a consequent bull run, but that the correction will be a massive one. And like we said, it could spell
a panic here in this chart.

At the bottom of the correction
is set at thirty thousand. But Bitcoin can be very volatile and the major
thing is to be prepared for this massive drop in price. This chart here shows the Bitcoin is likely to go
lower than it did on the 4th of January when there was a correction from its
new high record of forty two thousand. The retracement pattern is also pointed out on
this chart, which helps us to understand why we should expect another one. Look at the first retracement at around thirty
thousand and then another one here, a thirty two thousand from
higher and volatile positions. The chart predicts we're in for a long,
impulsive dip, which promises to be massive. For now, we're looking at a dip
of about 27000 from the bull position. This chart also shows that Bitcoin is not expected to
make a run to break out of its new high, but would rather continue
on a bearish movement. However, we are looking out for a long term
uptrend, but for now, the expectation is a downward movement. This is important for a
healthy upward trend in the long term.

Here in this last chart will notice that
it's very likely that Bitcoin will crash down. Notice how the RSI is trending lower as
well as the moving average convergence divergence indicator. This shows that we're likely
in for a low ride. It's also visible on this chart that the
twenty one exponential moving average or M.A twenty one that there was a
bounce after which lower high followed. The next stop is probably the M fifty and
that's the next report at around twenty seven thousand. The bounce after the correction is just
a decoy and now we will most likely start to see a proper correction as
the price of Bitcoin begins to descend. Remember that Bitcoin is very volatile. You need to be sure
you know what you're doing. So stick around for more videos like this. Thank you for watching. We hope you liked it. And if you
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