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- On December 4, Bitcoin witnessed the most bearish candlestick interpreting a crash by 35%
- According to analysts, the short term indicators show bullish signs for the crypto king
- Various large entities, including El Salvador, have reportedly brought the dip.
As the dramatic year limps to an end, where cryptocurrencies have both launched themselves to the moon while also plummeting, showering down like asteroids, It has also been quite a year for Bitcoin, Aka the crypto king.
After witnessing an all-time high of almost USD 69,000 in the half of November, the crypto king has only shredded in its value since. A month after its high, on December 4, the currency crashed by more than 34%, trading at a low of $46,581 overnight. However, Bitcoin did redeem itself instantly while trading at 50,000 levels, almost 48H after recording a session low. At the time of writing, the crypto king is still down by 24% from its all-time highs, trading at $51,703 and increasing by more than 5% in a day.
Similar crashes were witnessed in March 2020 and this year in May & June 2021, where investors realized a tremendous loss of approx $3.45 Billion. During the recent one, it was noted that short-term investors were reportedly selling their tokens at a loss, consequently leading the spent output profit ratio (SOPR) levels to negative territory.
According to various analysts, the present scenario could play out & interpreted in 2 possible scenarios. The one where the price travels haywire & sideways and continued momentum of SOPR drop or a scene similar to July where hesitancy creeps into the markets before another bull round.
According to professionals, various short-term indicators suggest a bounce nearby; however, as the SOPR & the buyer/ seller ratios are alarming, the token is prone to fall more despite a temporary bounce. Consequently, many analysts & portfolio managers are further cautious & hesitant to advise on the token as the volatility of Bitcoin has skyrocketed.
While the markets panicked, various entities have also reportedly brought the dip on Bitcoin. Rumors suggest that coinbase & Michael Saylor have brought the dip while the president of El Salvador, Nayib Bukele, declared it on the public platform, Twitter. However, such opinions could be alluring, but an individual should plan & study before investing in such volatile markets.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
