A cryptography expert has explained why a bitcoin-price-to-40000-heres-what-needs-to-happen/” rel=”nofollow”>bitcoin Pullback (possibly around $40,000) is not a bad thing. This occurs because there is a growing concern that he bitcoin-short-term-holders-4-5-profits-nov-2021/” rel=”nofollow”>flagship cryptocurrency He could soon lose all the achievements he has made in recent times.
A bitcoin Correction Is Necessary
in a mail On his platform He further mentioned that bitcoin's volatility “is a feature, not a bug.”
He made this statement in relation to his claim that the crypto token has doubled in two months without any pullbacks. Although has not been exactly duplicatedHowever, bitcoin has seen a significant rise in recent months. This is due to the possibility of the Securities and Exchange Commission (SEC) approving the bitcoin-etf-kill-switch-experts/” rel=”nofollow”>Spot btc ETF Pending Applications.
In fact, this impressive rally has occurred and the flagship cryptocurrency has barely seen any pullback. The bulls have remained firmly in control, with the bitcoin-bulls-crush-shorts-181-wiped-crypto-rally/” rel=”nofollow”>endure having to bear the brunt of this, as many continue to experience heartbreaking liquidations. However, as with any other asset, a correction is always expected at some point, and it could be now.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Crypto-Expert-Explains-Why-Bitcoin-Price-Drop-to-40000-Isn39t" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc price recovers above $42,000 | Source: BTCUSD On Tradingview.com
A btc correction is already occurring
bitcoin is already facing a pullback as more long positions have been liquidated than short positions in the last 24 hours, according to btc” rel=”nofollow”>data from Coinglass. In a previous x publicationClemente had warned that there would be “sharp corrections down the road as the market unwinds from greedy leveraged long positions.”
Meanwhile, the reason for bitcoin's respite could also be a result of those waiting on the sidelines to see the outcome of the Macroeconomic events that will happen this week.. This includes CPI inflation data due on December 12, closely followed by the FOMC meeting on the same day and on December 13.
Many will expect the outcome of those events to be quite positive, as that would further ignite the bullish sentiment currently resonating throughout the crypto community. Regardless of what happens, this sentiment is not expected to abate as many still have their eyes set on January, when a bitcoin Spot ETF Could Be Approved.
Liquidity is also flowing into the ecosystem, with digital asset investment products. experimenting its eleventh consecutive week of receipts of $43 million. bitcoin remains the main focus of these investors, with the flagship crypto token recording $20 million in inflows.
At the time of writing, bitcoin is trading at around $42,000, down in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
Featured image from Navi, chart from Tradingview.com
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