Bitcoin Corrects and Drops Below $39,000
The recent correction in the bitcoin market has become a reality as the price of $BTC has fallen below $39,000, breaking its upward trend. The next level of support is expected to be around $38,000, but any bounce from this level may be short-lived.
Identifying Major Support Levels
Further down, there are two major support levels for bitcoin. The first is at $34,000, and the second is at $30,000. However, reaching the $30,000 support level may be challenging as many traders will be waiting to buy at this price, potentially causing delays in order fulfillment. It is advisable for investors to consider scaling their buy orders from the $34,000 level or even higher.
Acquiring Bitcoin as a Scarce Asset
Bitcoin is a scarce commodity with a limited supply of 21 million coins, and a substantial portion of those coins have already been circulated. Additionally, around 20% of the total supply is lost forever. Considering the desirability and limited availability of bitcoin, investors are eager to acquire their share of this valuable asset.
Grayscale Fund’s Impact on the Market
The Grayscale Spot Bitcoin ETF has been heavily selling bitcoin, with an outflow of approximately $2 billion since its approval and launch. The bankrupt FTX exchange has contributed significantly to this sell-off by selling a large portion of its Grayscale BTC holdings within the initial days of the fund’s trading.
Hot Take: Bitcoin Correction Continues, Investors on the Edge
The current correction in the bitcoin market has taken the price below $39,000, breaking its previous upward trend. Investors are now looking for support levels, with $34,000 and $30,000 being significant thresholds. However, reaching the $30,000 level may prove challenging as demand will be high, potentially resulting in delayed buy orders. Despite the correction, bitcoin remains a scarce asset with limited supply, making it highly desirable to investors. Additionally, the Grayscale Spot Bitcoin ETF’s heavy selling has impacted the market, causing further downward pressure. As the correction continues, investors are on the edge, awaiting the next move in the bitcoin market.
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