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Pros say Bitcoin’s ‘very healthy’ correction ‘builds ground for more stable growth’

Published 04/23/2021, 04:11 PM
Updated 04/24/2021, 06:20 PM
Pros say Bitcoin’s ‘very healthy’ correction ‘builds ground for more stable growth’

Bitcoin and the wider cryptocurrency market took a beating in the late ho April 22, and intense selling saw (BTC) price dip below $48,000 in a move that came as a relief to quantitative analysts like PlanB who were worried that the price growth was showing signs of being inorganic.

A variety of factors have been identified as being the cause of the drop in price, including an overcrowded futures market and heavy selling activity from small- to medium-size whales. Aside from the activity of whales in the crypto market, the most impactful development was a proposal from the administration of United States President Joe Biden to raise the capital gains tax for individuals making more than $1 million per year.

BTC/USDT 4-hour chart. Source: TradingView
Net transfer of Bitcoin to/from exchanges. Source: Glassnode, S2F Capital
Bitcoin moving profits and losses (MPL). Source: Whalemap
Daily cryptocurrency market performance. Source: Coin360

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