Yesterday, we were discussing how the $56k support is important for this bull run. Breaking of this support could extend losses, and we might see a further correction. And that is what happened with Bitcoin, but our expectations were too optimistic. Bitcoin broke $56k and moved towards the $50k price point, and after breaching this important support, the price dipped to $42k in an hour. While Bitcoin comes down crashing to $42k, losing around 10% today, the price of most altcoins has already fallen by 20% or even more.
Bitcoin’s crash is bad
If we are unable to make support above $50k again, the correction could become worse, and testing $40k isn’t a far-off possibility. At present, the market has recovered a bit, and we are at $47.5k while altcoins are still bleeding. This time again, we saw the domino effect where the red candles were bigger, one after the other. And this was caused due to the huge leverage in the market. One can safely say that all the leverage in the market has been washed out at least to a particular level. This can help when the market recovers, and we move to a new high again.
A big problem here is that Bitcoin has broken many important supports, and it won’t be easy to reclaim those. This could very well be a fakeout and whale market manipulation to shake out new investors, but at this moment, I am not very bullish.
Altcoins are bleeding
While Bitcoin and Ethereum lost around 10% of their value, altcoins are down 20% and more. It is a dip one would want to capitalize on. I had some USDT in my bag, and since the INR value increased on the exchanges, I cashed it out. Once the market stabilizes a bit, then it would be a good idea to buy the dip. If you trade in INR pair, do note that the price of USDT has increased, which is why you should wait before buying. Solana, DOT, LINK, and UNI are some tokens that are available at incredible discounts right now.
What are your thoughts as Bitcoin comes down crashing to $42k? And did your buy orders get filled at these low prices? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Binance NFT is working on a gaming metaverse.
