Analysts at Bexplus found that Bitcoin plummeted to below $33K, and most altcoins have it even worse with massive double-digit price drops. After a highly positive first ten days of 2021, in which BTC broke above $40K for the first time and created an all-time high of $42,000, the cryptocurrency sharply goes down.
During the weekend, BTC was rising above $40K again. However, the situation quickly changed in the past 24 hours as the bears took charge. At present, it has ushered in the first single-day sharp drop of nearly 20% in the BTC bull market, which has led to a substantial correction of all cryptocurrencies. So far, there are no signs of easing the decline. Although there has been a rebound, it weakened again and continued to hit new lows.
Usually, the market rises faster, and the rate of rising will increase dramatically. In the same way, the accumulated fall-backs will be larger than once. It can be proved by the fact that the 3,000-point drop on November 26, the 7,000-point drop on January 4, the retracement of today's high by nearly 10,000 points. The cryptocurrency price turns down today, which is a deep break. The strength, depth, and duration of this fallback tend to be longer, which had an excessive impact on the market and severely affected the sentiment of buying more funds. Therefore, the ease of emotion will also be extended, and there is no need to worry about entering the market.
From the hourly chart, the current market is still unstable. It is suggested not to follow up with bottom hunters, but to wait for the trend indicators to become clear. Investors can enter the market when the position is better to gain a steady income.
One possible reason behind these corrections could be that the banking institution HSBC had reportedly blocked transactions from crypto exchanges for UK investors.