- Bitcoin price declines by 12% and is now barely over $21k, setting off sell-offs.
- Some analysts say there is no reason for investors to panic over this.
- Willy Woo says this is no sign that BTC is nearing rock bottom.
As this article is being written, the price of BTC has fallen below the critical support level of $23,500 and is now just hovering over the $21,000 threshold. The longer that the price continues to be lower than this level, the more powerful the selling pressure will be.
On the other hand, there are analysts who are of the opinion that there is no reason to panic because the sell-off is connected to negative net flow on major exchanges. This gives the impression that the majority of participants are looking to rack up or buy the dip in order to store the asset in their wallets, thus taking advantage of the price decline.
The value of Bitcoin (BTC) has dropped by more than 12% over the course of the last seven days and by approximately 2% over the course of the last 24 hours.
According to statistics provided by markets aggregator CoinMarketCap, the total value of the global cryptocurrency market cap was trading at $1.00 trillion at the time of writing, reflecting a reduction of 1.75 percent over the course of the past 24 hours. This put the market cap in danger of falling again below the $1 trillion level once again.
Willy Woo, a well-known Bitcoin analyst who has more than a million followers on Twitter, has said that at this moment, it is not definite if the negative streak will continue since there is no sign that BTC has hit or is nearing rock-bottom. The crypto market, as Willy Woo has stressed again, may see another prolonged consolidation phase similar to 2018s.