Bitcoin Plunge Sparks Concern: Is Another Price Crash Ahead?

Bitcoin’s Recent Price Crash

  • Bitcoin has recently crashed below the $26,000 mark, causing concern in the digital asset world.
  • The token has closed below its 200-day moving average, raising worries about its long-term direction.
  • Various factors such as China’s Evergrande bankruptcy and misleading news about SpaceX’s Bitcoin sale have contributed to this sharp decline.

What Caused The Crash?

Bitcoin’s sharp decline was attributed to a number of factors. These include 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.

Will Bitcoin Price Hold?

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 it did recently) since 2016, it has continued to fall an average of 20% lower. As of the latest data, Bitcoin’s trading price stands at $25,859.30.

Best To Be Cautious

Providing further insight into Bitcoin’s current state, Jurrien Timmer asserts that even though recent market moves have been pointing towards bearish sentiment in the short term , he does not expect a significant drop below $25k at least in the near future. He also advised investors to be cautious and wait for an indication regarding where this asset class is headed next before making any investments decisions .

All in all , with so many variables at play , it remains uncertain what lies ahead for Bitcoin . Analysts advise caution when investing and suggest waiting for more clarity on where this asset class is heading before making any investment decisions .

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