Bitcoin’s Price Plummets to $36,200
The Bitcoin price started a downward spiral on Monday, reaching as low as $36,200. This caused concern in the crypto community, which had been witnessing a market recovery. But what triggered this sudden plunge?
Profit-Taking By BTC Whales Triggers Decline
Given the recent surge from $27,000 to $37,000, it was expected that profit-taking would follow. The decline was more significant than anticipated due to large investors cashing out. These Bitcoin whales have moved or sold around 60,000 BTC in the last week, worth over $2.2 billion at current prices.
These investors hold between 100-10,000 BTC and have collectively dropped their holdings from 8.61 million to 8.55 million BTC.
Around 81% of BTC investors are currently in profit, leading to increased selling and a subsequent price decline.
Bitcoin Price Needs To Hold $36,400
The price has found support at $36,400 after the recovery but needs to maintain this level to avoid further declines. If it breaks below $36,400, the next significant demand level rests at $34,300.
For now, Bitcoin is holding steady above $36,600 with increased volume suggesting a possible uptrend soon if excitement about a Spot BTC ETF sustains.
Hot Take: Bitcoin’s Recovery Remains Uncertain
The recent plunge in Bitcoin’s price has raised concerns about its recovery. With large investors selling off their holdings and only 81% of investors currently in profit, the future remains uncertain for Bitcoin’s price trend. However, if the current support levels hold and excitement about a Spot BTC ETF continues, an uptrend above $37,000 could be imminent.
On Monday, the Bitcoin price began a spiral that saw it drop as low as $36,200. Naturally, this caused a stir in the crypto community which was starting to get used to the recovery trend in the market. The price has begun to increase once more, but what caused the plunge to $36,200?
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