Bitcoin (BTC) is entering a new week after another weekend of high volatility, but this time the road is going down, not up.

When the market lost $ 7,000, the highest since the beginning of the “vertical” price rally, Cointelegraph offers five things to help it move over the next few days.

The decline in BTC means the Guggenheim will sell
At the top of the list of topics among bitcoiners, the sudden drop in cryptocurrency will be on Saturday and Sunday.

With highs around $ 42,000, BTC / USD faced a sell-off after hours as bears pushed the pair to current local lows of $ 32,300.

The drop was the biggest this year since the coronavirus caused an asset crossover in March 2020, but analysts were expecting a lot, arguing that Bitcoin was over-expanded.

“#Bitcoin> 10% Glitch: Worst Bitcoin Drop since March resembles the last half of the 2016/2017 cycle. This growth was followed by a fall of more than 50% in 2017, ”financial columnist Holger Schibbitz summed up on Twitter.

In fact, the 23% drop is nothing new for long-time Bitcoin users, and the lack of large losses indicates that even over $ 30,000 in buyer’s support remains strong.

“These ups and downs are the opportunities you’re looking for in line with the # 40 FOMO sentiment you had for $ 40,000. Meanwhile, Cointelegraph Markets analyst Michael Van de Pope continued.

At the time of publication, bitcoin was already improving after a rapid drop – $ 35,000. It wasn’t enough for the institutional bitcoin buyer Guggenheim, but CIO Scott Meinerd suddenly suggested that the fund sell some of its bitcoins.

“The bitcoin parable rally is volatile in the short term. He said on Monday that it is vulnerable to failure.

“The technical target upside potential of $ 35,000 has been exceeded. It’s time to take the money off the table. ”
Others pointed to a potential deal for wholesalers.

David Gokshtein, founder of Gokhshtein Media, sums up the status quo: “Institutions are shaking really weak hands with everyone to get more bitcoins #”.

Biden talks about printing $ 3 trillion in cash
In the US, a potential bullish signal for Bitcoin is hidden in a massive $ 3 trillion stimulus program from the coming Biden administration in the wake of the recent surge in dollar strength.

A classic Bitcoin reversal correlation, the US Dollar Index (DXY) has increased in recent days, returning above the 90 mark after hitting its lowest level since March 2018.

In the past year, a weak dollar has often given Bitcoin a big boost while other price conditions have collapsed.

Matt Malle, senior marketing strategist at Miller Tabak + Co., told Bloomberg: “The dollar is so oversold, oversold and so oversold that it should all rise soon.”

“The dollar is hard-maturing for a possible pullback – a bounce that lasts at least a few weeks, and maybe even two months.”

In the long term, however, it has become clear to many this week that the United States has been grappling with its real economic problems along the way. New President Joe Biden is set to provide Americans with $ 2,000 honorable mentions in a gigantic money-printing operation that could cost up to $ 3 trillion.

If that passes, central bank liquidity will increase the most in the blink of an eye since the start of the coronavirus pandemic, and U.S. federal debt will surpass $ 30 trillion for the first time in history.

“It’s time for Plan B,” Danny Scott, CEO of CoinCorner Exchange UK, responded to the plans.

Source: CoinTelegraph

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