Bitcoin (BTC) Crash Could Trigger Panic Selloff While Market Stay Bullish

Bitcoin (BTC) Crash Could Trigger Panic Selloff While Market Stay Bullish

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A fall in the price of the first cryptocurrency below the psychologically important $30K mark could trigger a panic sell-off and a further decline in BTC to $20K.

Bitcoin has been in a sideways position for a long time, but experts have recognized this situation as unstable. The leading cryptocurrency had to either continue to rally or crash. Now players fear that a collapse scenario is about to happen. According to most experts, the fall was provoked by the relocation of miners from China to Canada, Kazakhstan, and Russia. Therefore, the fall in BTC should not be big and prolonged.

Miners outside of China are able to buy hardware at a low price, after which bitcoin mining will be continued at the previous scale. This should support the BTC price. However, traditionally August is a difficult month for bitcoin, so the price may slide to new support levels. Experts name two such levels, $25K and $20K.

The drop to $20K could be due to two factors. The first is the eventual unlocking of $1.4 billion in Grayscale Bitcoin Trust shares this week after a six-month lockout period. The second factor is the panic that retail investors are exposed to whenever there is any sign of a trend reversal.

However, some analysts are still inclined to recognize the market as bullish and name the fall to $20K a correction. At these levels, large investors who have been waiting for the right time can enter the market. And then the price of the first cryptocurrency will go up quickly.

Already, the BitInfoCharts service reports a large purchase of BTC worth almost $1 billion. 29,800 bitcoins are distributed to 18 addresses, and BTC has been held in these wallets since 2018 when BTC costs less than $4K. To date, this buyer has made a profit of almost 700%. Apparently, this whale still follows the practice of buying at a low price. In this case, a rebound is possible in the near future with the subsequent growth of bitcoin and the market.

However, analysts are in no hurry to make forecasts. By all accounts, no significant changes in the market are expected until the end of the summer. This means that the bullish trend continues. But if bitcoin does not rise by mid-autumn, this will mean a trend reversal and a bear market. In this case, the drop in quotations will last until 2023, the BTC price may collapse to $10K.

Market growth in 2023-2025 experts predict due to the fourth halving, which will take place in 2024. Halving means that the reward for mining decreases by half, after the halving, the price of BTC usually rises. In May 2020, the third bitcoin halving took place, after which BTC from $9K rose above $64K.