Following the major upgrade of the BTC network through the rollout of the long-awaited Taproot update which improves both privacy and security, bitcoin turns bearish.
The cryptocurrency has plunged by over 6 percent in the last 24 hours to below $61,000 on the morning of Tuesday, 16th of November. Other leading cryptocurrencies, including Ethereum (ether), Solana (SOL), and Cardano (ADA), as well as the meme coins dogecoin and shiba inu, have also had value drop in the last 24hrs.
Though, as bitcoin turns bearish, the price is yet to dip below $60,000 however, Bitcoin must stay over the $60,000 support level. If the coin crashes below the $60K mark, the bearish pattern may stay longer than expected.
Presently, social media is filled with hot takes by analysts and market commentators on the cause of the crypto price crash. Glen Goodman, Market analyst, and cryptocurrency author believes the latest dip is caused by “excessive optimism”.
He tweets: “Corrections last as long as it takes for most traders to start losing hope and stop buying dips.”
There hasn’t been one tangible reason for this price crash, with several factors potentially coming into play. At the end of last week, there was a rejection of the spot bitcoin ETF by the SEC, though that had little impact on the market at the time and there are more in the pipeline.
China also tightened restrictions on cryptocurrency mining, though the crackdown as at earlier this year means the number of operations left in the country is negligible.
Finally, there is a high possibility that long-term holders of BTC are taking the advantage of the recent all-time high to skim off profits from their stash.
The fall in price also brings out the panic sellers, these are traders who are typically new to cryptocurrency investment and prone to being spooked by sudden market variations.
BTC is currently trading at around $60,500, the next few hours or days will prove crucial to see whether the recovery will be properly maintained.
As it is a norm following a sudden fall in price, staunchest BTC advocates and optimistic bulls are celebrating the opportunity to “buy the dip” and stock up on BTC while its price is relatively cheap – at least compared to the week before.
