Three possible reasons why bitcoin price dropped by $3000 - Is the bull trend still there?

[BrolySSJ 7899]

The recent crash in the bitcoin market has everyone in the crypto world on edge, especially with the losses that some incurred and the fact that the last time there was a crash like this, the price plummeted greatly. However, in order to understand whether there will be a further drop in price or if the price of bitcoin will now start to recover, let us look at the possible reasons for this price drop and then from there say if the bull or bear market is coming. 

 

The firs reason for the drop in price is that there has been excess leverage. Over the course of the day that the bitcoin price dropped, there was close to 2 billion dollars in derivative positions that were cashed out. With these derivative positions, the price was bound to crash. 

 

The second reason is that this could just be a technical pullback, and if this is the case, then we should see this as a healthy pullback according to Stack Funds' Dibb. Pullbacks occur as a way to adjust the market and to reestablish and realign the market so that it can be in a more favorable bull market. 

 

And lastly there are smaller factors that could have affected the price as well. One of these factors is a rumor that the US will track owners of crypto wallets. Therefore there is likely that there was a major sell off of crypto for those that feared this rumor. Another factor is that the exchange OKEX has stated that it will resume with withdrawals and therefore it is possible that there is, or rather was, a lot of withdrawals during this time period. 

 

Based on these reasons, it is believed that the market is still showing a bullish trend. Crypto analysts believe that this was just a pullback and they are still confident that the price will surge even further than we have seen already. In fact the co-founder of the Mumbair-based WazirX exchange says that there is a good chance that bitcoin is still yet to reach its high point. 

 

Based on this analysis it seems that now may be a good time to continue to invest in bitcoin, and if you have made losses because of the drop in price, then perhaps you should HODL your coins and be patient. You soon may be seeing a profit. Do you guys agree with this analysis? Let me know your thoughts on bitcoin trade and future price speculations. 

[Mansoor sumaan 29 0]

all the possibilities are present in our mind now a few days ago we were predicting that the Bitcoin will go up and it will touch to the $20,000 but now as a crash of the Bitcoin it may lose its value and yadav are saying main bhi it to $3,000 . it is a big crash of the Bitcoin and a very disappointing used for the investor's of the Bitcoin who own a lot of Bitcoin in their wallets.

[Barbarellah 2225]

Excellent! I totally agree with everything you expose in your publication, apart I can add that other influencing factors apart from these was movements registered by several users of large amounts of Bitcoin to renowned Exchange which was seen as movement of whales preparing to act Faced with a possible spike and selling en masse, many took notice of the action, panicked, and started selling. Even waiting for a new fall in prices in Bitcoin, we can expect that the historical maximum will be reached before the end of the year, even that it will be surpassed, setting a new record since the scenarios that are presented today are much better than those that occurred in 2017. I add that if it is time to enter the game and if the fall is less, many will start to participate since the future rise is imminent.

[annayks 2314]

It feels that the price found the bottom. If it goes down more I'd be still in less profit but I won't quit my investment. Price of Bitcoin for the short term doesn't make me feel scared. As far as I see this, nothing has changed, and I will try to buy more if it keeps dropping as I am sure if a short term bearish trend happens it will be very temporary.

[wassim19 645]

The price of Bitcoin is affected by many factors that lead to a significant drop in the price, and one of the most important reasons is whales manipulating the market, intimidating traders, buying from below and selling at the top. It is difficult to expect, but the price of Bitcoin will improve and rise

[hani20980 2706]

I think this is just a correction in bitcoin price im sure it will rise again to higher levels there is

no way that BTC price will drop to 3000$ that's almost impossible and as you said we shouldn't

sell our bitcoin at current price because it's too low we should hold BTC or trade in altcoins

[Abdul1168782 572]

Yes you are right and in my opinion that BTC and other digital crunncies will rise soon to their past value amd price because this year was very bad with respect to market level.

[Kafon 0]

According to my technical analysis, I see that this decline that occurred is just a correction and reaping some profits from traders who bought from areas of 12 thousand dollars, and we may continue for days like this to form a new low on which prices are based to continue rising to the 20 thousand region.

[estmerbol 257]

Very good analysis, I think it is also a small retreat of preparation for a new uptrend, for example the CEO of BInance speaks that it can stay some days between 16 K and 17 K. but stoy almost certainly breaks the 20 K before the 2021 or the first days.

[Yoanny 232]

You have made an excellent summary of possible reasons why the price of the btc has indeed dropped. However I don't think it will go down in the worst case scenario of 10k, although to be honest I would love it to go down to 3k, so I could buy a lot. Anyway the market has the last word.

[zhoutong 2188]

I can't give a prediction right now. I don't want because it is difficult moment but I think that price is holding, volumes are up a lot and the positive trend can continue. I don't think price will go lower but maybe it will be a good time to buy this dip. There is risk of course and news of more selling can appear but all the lows are giving traders some good profits. I can say that we reached low at 16300, or perhaps there will be another wave down to 16000 or 15000 but I don't think it will go lower.

[isther69 521]

12 hours ago, BrolySSJ said:

The recent crash in the bitcoin market has everyone in the crypto world on edge, especially with the losses that some incurred and the fact that the last time there was a crash like this, the price plummeted greatly. However, in order to understand whether there will be a further drop in price or if the price of bitcoin will now start to recover, let us look at the possible reasons for this price drop and then from there say if the bull or bear market is coming. 

 

The firs reason for the drop in price is that there has been excess leverage. Over the course of the day that the bitcoin price dropped, there was close to 2 billion dollars in derivative positions that were cashed out. With these derivative positions, the price was bound to crash. 

 

The second reason is that this could just be a technical pullback, and if this is the case, then we should see this as a healthy pullback according to Stack Funds' Dibb. Pullbacks occur as a way to adjust the market and to reestablish and realign the market so that it can be in a more favorable bull market. 

 

And lastly there are smaller factors that could have affected the price as well. One of these factors is a rumor that the US will track owners of crypto wallets. Therefore there is likely that there was a major sell off of crypto for those that feared this rumor. Another factor is that the exchange OKEX has stated that it will resume with withdrawals and therefore it is possible that there is, or rather was, a lot of withdrawals during this time period. 

 

Based on these reasons, it is believed that the market is still showing a bullish trend. Crypto analysts believe that this was just a pullback and they are still confident that the price will surge even further than we have seen already. In fact the co-founder of the Mumbair-based WazirX exchange says that there is a good chance that bitcoin is still yet to reach its high point. 

 

Based on this analysis it seems that now may be a good time to continue to invest in bitcoin, and if you have made losses because of the drop in price, then perhaps you should HODL your coins and be patient. You soon may be seeing a profit. Do you guys agree with this analysis? Let me know your thoughts on bitcoin trade and future price speculations. 

In my personal opinion, I believe that this fall is healthy for the price after that parabolic rise that we had because if we go to the past history of BITCOIN it has never risen so parabolic without a fall, most previous falls have been between 20% and 30%, however, we touched one of only 10%, which means that we still have the upward trend and this may be an impulse to pass the resistance of the historical maximum in the remainder of the year.

[Syedbesharat 5423]

This could be anyone reason or lots of reasons because crypto market is running 24/7 and global trading going on everywhere so huge withdrawal or BTC selling may cause this .So far what I observe it's the ideal price of long holder with high price and they have sell their BTC after long time and not waited more enough. They find the right price and sell their coins. The price is fluctuate because of them. 

[Froshk 1828]

11 hours ago, BrolySSJ said:

The recent crash in the bitcoin market has everyone in the crypto world on edge, especially with the losses that some incurred and the fact that the last time there was a crash like this, the price plummeted greatly. However, in order to understand whether there will be a further drop in price or if the price of bitcoin will now start to recover, let us look at the possible reasons for this price drop and then from there say if the bull or bear market is coming. 

 

The firs reason for the drop in price is that there has been excess leverage. Over the course of the day that the bitcoin price dropped, there was close to 2 billion dollars in derivative positions that were cashed out. With these derivative positions, the price was bound to crash. 

 

The second reason is that this could just be a technical pullback, and if this is the case, then we should see this as a healthy pullback according to Stack Funds' Dibb. Pullbacks occur as a way to adjust the market and to reestablish and realign the market so that it can be in a more favorable bull market. 

 

And lastly there are smaller factors that could have affected the price as well. One of these factors is a rumor that the US will track owners of crypto wallets. Therefore there is likely that there was a major sell off of crypto for those that feared this rumor. Another factor is that the exchange OKEX has stated that it will resume with withdrawals and therefore it is possible that there is, or rather was, a lot of withdrawals during this time period. 

 

Based on these reasons, it is believed that the market is still showing a bullish trend. Crypto analysts believe that this was just a pullback and they are still confident that the price will surge even further than we have seen already. In fact the co-founder of the Mumbair-based WazirX exchange says that there is a good chance that bitcoin is still yet to reach its high point. 

 

Based on this analysis it seems that now may be a good time to continue to invest in bitcoin, and if you have made losses because of the drop in price, then perhaps you should HODL your coins and be patient. You soon may be seeing a profit. Do you guys agree with this analysis? Let me know your thoughts on bitcoin trade and future price speculations. 

These is definitely a confusing moment for many crypto enthusiasts because the way rates drops and climbs back, one will wonder if it's bearish of bullish trend we currently experiencing. 

[Jromz 2158]

Well, whatever the reason is, this is obviously not a moment to panic, and it should be clear that any asset cannot keep going up endlessly, but there have to be some room for it to correct and gather more liquidity in lower levels. Indeed, this is not anywhere near from what Bitcoin can actually correct in a bull trend (up to 40 %), which is how weak hands are shaken off before resuming the upwards trend. 

[Goyaa 2414]

I agree with this analysis, the decline in bitcoin prices is temporary, don't panic and save your bitcoin, I think the bullish trend is still happening. I think the cause of the decline in prices in the last few days has been the excessive leverage which made the market a little lower, last week's massive sell-off on price increases has pushed bitcoin stocks so this price drop occurred. I think this is the main reason for the price of bitcoin to fall, don't panic, this decline is a common thing, don't sell cheaply because the increase in bitcoin prices will happen again.

[Froshk 1828]

On 11/27/2020 at 8:05 AM, BrolySSJ said:

The recent crash in the bitcoin market has everyone in the crypto world on edge, especially with the losses that some incurred and the fact that the last time there was a crash like this, the price plummeted greatly. However, in order to understand whether there will be a further drop in price or if the price of bitcoin will now start to recover, let us look at the possible reasons for this price drop and then from there say if the bull or bear market is coming. 

 

The firs reason for the drop in price is that there has been excess leverage. Over the course of the day that the bitcoin price dropped, there was close to 2 billion dollars in derivative positions that were cashed out. With these derivative positions, the price was bound to crash. 

 

The second reason is that this could just be a technical pullback, and if this is the case, then we should see this as a healthy pullback according to Stack Funds' Dibb. Pullbacks occur as a way to adjust the market and to reestablish and realign the market so that it can be in a more favorable bull market. 

 

And lastly there are smaller factors that could have affected the price as well. One of these factors is a rumor that the US will track owners of crypto wallets. Therefore there is likely that there was a major sell off of crypto for those that feared this rumor. Another factor is that the exchange OKEX has stated that it will resume with withdrawals and therefore it is possible that there is, or rather was, a lot of withdrawals during this time period. 

 

Based on these reasons, it is believed that the market is still showing a bullish trend. Crypto analysts believe that this was just a pullback and they are still confident that the price will surge even further than we have seen already. In fact the co-founder of the Mumbair-based WazirX exchange says that there is a good chance that bitcoin is still yet to reach its high point. 

 

Based on this analysis it seems that now may be a good time to continue to invest in bitcoin, and if you have made losses because of the drop in price, then perhaps you should HODL your coins and be patient. You soon may be seeing a profit. Do you guys agree with this analysis? Let me know your thoughts on bitcoin trade and future price speculations. 

These is definitely a confusing moment for many crypto enthusiasts because the way rates drops and climbs back, one will wonder if it's bearish or bullish trend we currently experiencing. 

Edited November 30, 2020 by Froshk

[Guru2050 8284]

I may likely agree on the aforementioned analysis since BTC is a volatile coin and yet BTC has not rose to a higher point so with all these possibilities probably let considered it as just a set back for a moment but hold on patiently waiting for surprising bullish market of BTC 

[Razan alikac 1899]

The decline in the price of Bitcoin strongly was surprising to everyone, after it reached 19500, it fell sharply to 16000 and I think the reason is that everyone was expecting a rise in more than this and exceeding 20000, but whales, bulls and bears are the ones who played the game by moving it up and then lowering it, and I think another rise soon

[Raqeebzy 6456]

Great. In fact, I can say all three factors or even more might have played their part in the sharp correction at $19'000. 

However, I think it is more of a technical pullback which will recover very soon enough. At least, we have seen some glimpses of that all from a little above $16'000. To go up all the way to $19'000, we'll need a great volume to support it.

[Onden 2098]

In my opinion, this price reduction is temporary, nothing to worry about. You will see the bitcoin price go up again this December. This sudden decline makes us nervous and confused about whether to sell at the current price or to wait a little longer. The most logical reason for this decline is excess stock due to heavy sales this week, I think bitcoin prices will return to normal and rise again in early December.

[setifien 1016]

6 hours ago, Raqeebzy said:

Great. In fact, I can say all three factors or even more might have played their part in the sharp correction at $19'000. 

However, I think it is more of a technical pullback which will recover very soon enough. At least, we have seen some glimpses of that all from a little above $16'000. To go up all the way to $19'000, we'll need a great volume to support it.

As I can see now on the chart, btc is recovering after the short pullback correction, now it's traded at the rate of 18200$ which is very positive at the 7 days frame, and for the next bull run, it may go higher than 20k$ 

[scofield64 943]

I agree with your analysis for the reasons why bitcoin dropped in price, people who hold bitcoin should be patience and wait for little more time the price of bitcoin will rise and it's will turn to profits. 

[Irungu 4299]

To me I summed it as a drop in readiness to make a coin grow to the the tp after the huge price fall expectation or so many people expected the price to go up, this was never to happen because then you find that there was a certain strange measure to it, there were so many people who bought bitcoin because they thought the price would rise drastically after the halving happen so the coin had to fall so that it could rise after the halving.

[magd 5231]

I will talk about the matter from the point of view as a trader, the price drop that occurred is expected for two reasons:
The first reason is a decline in order to adjust prices in the market, especially after its rapid rise and decline in Ethereum, and the second reason is to make room for large traders to buy larger quantities of bitcoin, and today we notice the return of the rise in a large and consistent manner among all currencies