6 possible reasons why the price of Bitcoin fell by almost $ 3,000 in a few hours

Bitcoin after two months of steady growth, he lost almost $ 3,000 in a matter of hours. Here we look at possible reasons why the price of BTC today fell under $ 17 thousand.

Bitcoin fell by thousands of dollars – possible reasons

OKEx resets selections

The founder of the stock exchange was allegedly arrested in October, and the selections were suspended shortly thereafter. OKEx is one of the leading cryptobourses in the Asian markets. The stock exchange originally promised customers that it would open withdrawals tomorrow, but in the end they did so the day before. It is not entirely out of the question that investors who have regained control of their cryptocurrency have taken profits. The same applies to Chinese miners who use OKEx to realize mining profits.

FUD coming from Trump’s office

We also have one message that borders on FUD. GBrian Armstrong, chief energy officer at the leading US cryptocurrency exchange Coinbase, fears alleged regulations proposed by the incumbent Trump administration’s finance minister. If implemented, regulation could harm users and the overall role of the United States in cryptocurrencies. The proposal allegedly requires verification of the identity of the crypto-wallet owner before the transaction is completed. This would be a serious invasion of privacy that Bitcoin and other cryptocurrencies offer.

No correction yet

What goes up must go down. Looking at the graph, we all at least suspected that growth could not continue indefinitely without correction. The bull run went in only one direction and now a natural correction has taken place. This may in fact be the main reason, although we all prefer some “specific” explanation. Many traders have long called for a slump. With the current price around $ 17,200, the BTC rate fell by about 10% in 24 hours. From the maxima to the current bottom of the short-term correction, it is then about 15% of the distance.

20,000 is strong resistance

Another reason why the price of BTC suddenly lost several thousand dollars is the attack on levels just below the last ATH. This is an entire area in the range of several hundred dollars just under $ 20,000 / BTC. Bitcoin set a historical high here 3 years ago. It is not only a strong technical resistance, because it is historically the highest, but it is an even stronger psychological resistance.

Increased inflow to the stock exchanges

Just before the collapse increased the inflow of BTC to the stock exchange. This was pointed out by Ki Young Ju, CEO of CryptoQuant. Young Ju nevertheless argued that long-term on-chain indicators still “They say the buying pressure prevails.” However, he said that some whales put BTC on the stock exchange.

Extreme greed

The last possible reason for the fall in the price of BTC, expressed in the value of dollars, is the overall overheated market and the greed of traders to the maximum. Crypto Fear & Greed Index is the index of fear and greed in the Bitcoin market. He was at extreme values ​​for extreme greed for some time before the start of the correction. According to legendary investor Warren Buffet – it’s important to have “Fear when others are greedy.”

Source: Alternative.me

Conclusion

We have offered you 6 possible reasons why a correction occurred at the cryptomarket. The main thing may simply be the fact that this has not happened to a greater extent for more than 2 months. In September, Bitcoin cost about $ 10,000, today it’s about $ 17,000, which is a very quick appreciation anyway.

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