Bitcoin plunged by 15% in three days, making cryptomarket panic - - Financial Market Media No. 1 in the World Bitcoin plunged by 15% in three days, making cryptomarket panic Bitcoin plunged by 15% in three days, making cryptomarket panic

March 17, 2021

Bitcoin plunged by 15% in three days, making cryptomarket panic

 The main digital asset is declining for three consecutive days. And if it only lost $ 1,100 in value last Sunday, then the following day it is already $ 3,300. Today, it fell by another $ 3,000, and the day is just starting. It seems that a new correction period has begun in the cryptocurrency market. On the other hand, most analysts and crypto experts immediately talk about strong bearish signals and Bitcoin's likely collapse to $ 40,000. In our opinion, such a scenario is quite realistic. One of the reasons for this is the possible complete ban of BTC in India. However, what's more important for its current prospects is what major institutional investors think about the current price. It is already known that large investors can afford to keep Bitcoin in their portfolios for many years, thus keeping its value from declining. However, will new institutions join the current upward trend? It is also no secret that Bitcoin's popularity is gaining impulse among large investors, but how many of them are going to buy "cue ball" in the near future?

It's simple. We can just clearly say that there is a new round of correction. If the dropped bitcoins are immediately bought by institutions during this correction period, then the leading cryptocurrency will be kept from sharply falling. However, there are few people waiting for it below $ 40,000 per coin and nothing is impossible. It should be noted that when BTC is trading above $ 50,000, which was very great a year ago, few people expect its value to lose 80%, as it did in 2017-2018. It can be recalled that there is an argument that "Bitcoin will grow anyway" but this should not be considered, as anything could happen.

Anyhow, Bitcoin traders lost a total of $ 2 billion yesterday, as the specified cryptocurrency fell below $ 55,000. In this case, their positions were closed forcibly – 95% of closed positions are long positions, which means that losing traders are not ready for the opposite scenario and are unwilling to make drawdowns. Note that shortsightedness and blind faith in Bitcoin's growth can result in serious losses.

From the point of view of technical analysis, the quotes of "cue ball" continue to move towards the first significant support – the Kijun-sen line. A clear rebound from this line can already provoke a new upward movement, but it seems that the cryptocurrency will decline to the area of $ 43,000-$ 44,000 per coin again, where a strong support area lies. In this case, much will depend on the Kijun-sen line in the next few days.