Summary
- Bitcoin recently experienced a significant crash, plummeting below the $26,000 mark for the first time in two months.
- The token has closed below its crucial 200-day moving average (MA), a trend line that holds significance in determining Bitcoin’s long-term trajectory.
- Various factors have compounded this downfall including China’s Evergrande Group filing for bankruptcy, misleading news about Elon Musk’s SpaceX offloading its Bitcoin holdings, and a frenzied wave of liquidation.
Bitcoin’s Price Crash Causes Concern
In a stunning development that has set the cryptocurrency world abuzz, Bitcoin , the cornerstone of the digital asset realm, has experienced a significant crash, plummeting below the $26,000 mark for the first time in two months. This might be a shock to many, but the token has always managed to bounce its way back up to the top. Is this time going to be any different?
Bitcoin’s drop below its 200-day moving average raises worries about its long-term direction, historically linked to further declines. Joe Carlasare, one of the crypto enthusiasts took his observation to Twitter stating that; “Every time that Bitcoin has closed under the 200-day MA (like we did yesterday) since 2016, we have continued to fall an average of 20% lower. As of the latest data, Bitcoin’s trading price stands at $25,859.30 having briefly touched an intraday low of $25,619 according to Coinpedia News .
Factors Contributing To The Crash
Various factors have compounded this downfall including China’s Evergrande Group filing for bankruptcy , misleading news about Elon Musk’s SpaceX offloading its Bitcoin holdings worth $373 million , and a frenzied wave of liquidation . Read More: Evergrande’s Bankruptcy Filing Causes Bitcoin to Crash by 7%! It’s Best to Be Cautious
Expert Opinion On The Current State Of BTC
Providing further insight into Bitcoin’s current state Jurrien Timmer , a market analyst associated with Fidelity , asserts that Bitcoi n is currently undergoing some churn as investors are taking their profits off from their investments due to high volatility in prices and uncertainty regarding future prospects. He said,“I think what we’re seeing today is people taking profits after such an amazing run“.
