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PlanB speculates that BTC price fall doesn’t mean the end

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Historically, April has always been a very good month for BTC, but not this year. Now Bitcoin continues to roll back and for the first time since March 8, the cost of the main cryptocurrency dropped below $ 50 thousand.On April 23, the cost of Bitcoin on the Binance crypto exchange was $ 47.5 thousand.Thus, over the past day, its price decreased by 12%. Against the backdrop of a fall in quotations, users of crypto-exchanges lost $ 3.7 billion.

However, according to well-known cryptanalyst PlanB, this does not necessarily mean that the rise in asset prices is over. “Nothing goes up in a straight line”, PlanB said in a Tweet on Friday.

He believes that there are no signals about the beginning of a period of a protracted and strong correction in the market. He expressed confidence that now a period of accumulation of forces is going on before a new leap forward. According to the expert’s forecast, Bitcoin may still go down, but in the coming weeks there will be a consolidation around $ 50 thousand.

Why are quotes declining?

There are several reasons for the decline in the price of BTC:

– The cryptocurrency began to fall in price over the weekend due to reports of the US Treasury’s readiness to tighten regulation in this area;

– Crypto enthusiasts’ expectations regarding the direct listing of Coinbase shares on Nasdaq were not fully justified. Many were expecting more stunning results;

– Power outages in the mining provinces of China, which led to a drop in the hashrate of the Bitcoin network.

In addition, a large-scale correction was launched by the news about the plans of US President Joe Biden to increase the capital gains tax for the rich by almost two times.

The tax news is a big Bitcoin bomb that went off at a very unfortunate moment.

Did traders rush to buy altcoins during the fall of BTC?

As it happened earlier at the beginning of major corrections, BTC for some time gives way to the continuing growth of altcoins. The market capitalization of Bitcoin dropped below $ 1 trillion level reached in February and fell to $ 900 billion. The total cryptocurrency market capitalization also fell below $ 2 trillion, to $ 1.735 trillion. BTC Dominance Index fell below 50% yesterday for the first time since 2018. But today it has recovered again to 51.6%.

The share of Ethereum in the market capitalization at the time of publication is 14.2%. At the same time, the ether rate yesterday renewed its historical maximum, reaching $ 2 644, but then fell below $ 2 200 in a few hours.

FundStrat analyst David Grider believes that the current situation signals the market’s appetite for risk. He explained that the recent developments resemble the “ICO boom” that has lasted since mid-2017 and fell in the first few months of 2018. This period was characterized by large ups and downs in altcoins and “rampant” market speculation. However, many altcoins collapsed at the end of 2018, and investors suffered serious losses.

Conclusion

Bitcoin plummeted and pulled all cryptocurrencies with it. Earlier in April, BTC was predicted to crash soon. Analysts interviewed by CNBC said that the cryptocurrency market was showing signs of a “bubble” that could “burst” in the near future. Will it be so or not? We just have to follow the movement of the crypto asset …