For the first time since March, the price of Bitcoin has dropped below $50,000, with the asset dropping around 10% in the last 12 hours.
The $60,000 range was rejected on Apr. 17, which caused a crash in BTC price of close to 20% in just an hour. The markets consolidated around $55,000 for a few days after that but bulls failed to support the range on Apr. 22, causing a sustained bearish action over the last day.
There were reports yesterday that significant profit taking actions in the Bitcoin market may suggest a looming local top, and today’s crash appears to confirm this assumption. Additionally, JP Morgan analysts also sent similar warnings of sustained bearish action if BTC failed to reclaim the $60,000 level.
Mixed market reactions
The $50,000 level has been claimed to be a psychological mark for many investors in the market. The move below this mark has brought mixed reactions on Twitter. Mira Christanto, a Messari researcher has said that the markets have retraced from the all-time high by only 23%, which is less than the typical pull-backs experienced during the 2017 bull run. This produced average losses of losses 35%.
#Bitcoin is down -23% from the $65,000 peak. Let's put that into context where the average dip was -35% in 2017
— Mira Christanto (@asiahodl) April 23, 2021
Peter Schiff, a notorious gold bug and crypto skeptic has also contributed to the conversation by poking fun at Bitcoin proponent Anthony Pompliano. He said that since Bitcoin was back below $50k, Pompliano should tweet out $1k milestones on the way down as he did on the way up.
— Peter Schiff (@PeterSchiff) April 23, 2021
To this, Pompliano replied saying that in the period that Bitcoin had gained 600% gold had only gained 3%.
Bitcoin is up 600% in last year.
Gold is up 3% in last year.
No more tweeting until gold can beat inflation, Peter!
— Pomp 🌪 (@APompliano) April 23, 2021
The altcoin reaction
Bitcoin is not the only asset to have experienced negative market action. Other altcoins have also tumbled, with Ethereum shedding roughly 13% in the last 24 hours. Binance Coin (BNB) has also slumped by around 14%, Dogecoin (DOGE) by 18%, Litecoin (LTC) by 20% and Polkadot (DOT) by 14%.
Despite the recent slump, Ether has outperformed BTC in recent days, by its rally that resulted in a new all-time high above $2,600 on Apr. 22.
Additionally, the high prices experienced yesterday saw ETH/BTC trading at its strongest level since August 2018, with ETH trading at 0.04 BTC. Ethereum last changed hands for 0.045 BTC.
In the last seven days, Bitcoin has dropped by 19% while Ethereum has only dropped by 5%.
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