Bitcoin and other cryptocurrencies had witnessed one of the worst trading sessions in recent times. Bitcoin Price Plunged from 42000$ to 30000$ during US Trading Sessions, Bitcoin price found an intraday bottom at 30,000$, BTC Price quickly bounced from this support and reached above 39000$ within few minutes. The Cryptocurrency Market lost more than 20% of its value in the last 24 hours, Ethereum, and Binance also hit hard and lost more than 40% value in the last 24 hours.
In our last update on 23rd April, we have discussed the possibility of this drop.
During the market pullback, in the mass liquidation event, more than $8B got liquidated on different futures exchanges, and more than 800,000 individual accounts lost their complete funds.
At the time of writing, Bitcoin is trading above 38,000$, Buying pressure has been building up during the ongoing Asian trading session. By the current look, Bitcoin can recover quickly from here, and should close the day above 40,000$ today.
Despite the Major Market Pullback, Nothing has changed fundamentally, Corporations are still buying bitcoins, Tesla is holding Bitcoin, and Taproot activation is not delayed. Bitcoin will bounce back soon.
More than 1 Million addresses bought Bitcoin in last 24 hours
According to On-Chain Data, More than 1 Million addresses bought Bitcoin between $32,300.26 and $43,781.97, That’s more than 68.5% of the total on-chain volume yesterday. 487.66k addresses sold Bitcoins yesterday during the market pullback yesterday. That’s accountable for less than 32% on-chain volume.
Possible V Shape Recovery
It’s not the first time that we are getting a larger pullback in a bull market, It happened in the last bull run as well. China Ban narratives have always been a part of every Bitcoin’s bull cycle, so back in 2017 When China dropped the news to ban cryptocurrency, the Bitcoin price dropped around 23% on 14th September. Interestingly Bitcoin recovered quickly from that drop, and Bitcoin recorded around 95% growth in the next 30 days.
On Daily Chart, We found a lot of similarities between the September 2017 drop, and yesterday’s pullback. Bitcoin is showing strong buying pressure on the lower time frame, if the current daily candle manages to close above 40,000$ then I think Bitcoin will quickly recover from the recent pullback, and btc price should retest to 48,000$ Area soon. We have a decent chance here for a possible V Shape recovery if it happens then we can find a bitcoin price above 100,000$ in the next few months.
Social Media Sentiments
#Bitcoincrash is trending worldwide since yesterday. We saw mixed responses on social media.
Bitcoin will become a better store of value after Taproot Activation
Taproot is the most significant upgrade to the Bitcoin network since the block size increase of 2017. The relative infrequency of Bitcoin upgrades highlights one of its main features: It is robust. Taproot will not only improve Bitcoin’s usability, which could have the effect of broadening its market and therefore potentially its value as well.
Taproot now has more than the required minimum of miners signaling support to lock in the upgrade, but the upgrade isn’t a shoe-in just yet. Per the activation rules set by Speedy Trial, 90% of blocks mined within one of Bitcoin’s difficulty periods need to signal support for the upgrade for it to be locked in for activation in November. Currently, mining pools that represent 94% of Bitcoin’s hashrate have now included the Taproot “signal bit” to show their support for the upgrade. Taproot should lock in the next few weeks.
Bitcoin Corporate & Institutional Adoption
According to ForextoStock 35 Listed Companies are holding more than 200,000 Bitcoins, Micro-strategy bought more bitcoins during market pullback, and currently holding around 111,000 Bitcoins. Tesla holds more than 42,000 Bitcoins which they acquired in March this year. Grayscale® Bitcoin Trust (GBTC US) is currently holding 653,274 (BTC), and 3,165,721 (ETH). This number will only increase in the future, as more corporations are waiting to add bitcoins in their reserve.
The Road Ahead
Bitcoin will reach 100,000$ Sooner than you think, So use the current drop as an opportunity to buy bitcoins for long term. I want to advice everyone to stay away from altcoins, because Bitcoin dominance has found support at 40%, and should increase in value with bitcoin price appreciation. Bitcoin is the best trade right now, which you should not miss.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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