The world’s leading cryptocurrency has recently settled for a new price level, below $40,000 for the first time since February this year. The drastic fall in price followed huge amounts of coin inflows to exchanges.
At the moment, Bitcoin trades around the 200-day moving average. A bounce back from this point may indicate a continuation of the bullish run while a fall below this level may mean more doom for the crypto community.
Bitcoin Analysis by Crypto Experts
Various crypto analysts have given their views on the current state of Bitcoin. On Twitter, CryptoHamster suggested that the Bull Run is still very much alive as BTC currently forms a descending wedge pattern, and a reversal from this point is expected.
Lark Davis, a seasoned crypto trader noted that the 14-day moving average for BTC indicated that BTC has been oversold. This is the first time the 14-day MA entered the oversold region since March 2020.
PlanB, another crypto analyst also affirmed that the Bull Run is still in place. He however acknowledged that some indicators suggest that the Bull Run will soon be over.
William Clemente III on the other hand drew the attention of his Twitter followers to the huge inflow of coins to centralized exchanges that happened on the 18th of May. His data was sourced from Glassnode, and it revealed that 22,917 BTC was transferred into centralized exchanges within one hour on Tuesday.
Huge inflow to exchanges usually suggests that investors are willing to offload or sell their coins, and this was exactly what happened. A huge portion of the $1.4 billion worth of coins transferred to Binance has been sold off.
Bitcoin is not the only crypto asset currently in a dip. Altcoins also joined the flagship currency as has always been the case.
Early during the trading day today, Ethereum tumbled below $3000 and went as low as $2900. Other high market cap coins like the Binance Coin and Cardano also tumbled. Binance coin currently trades around the $400 region while Cardano dumped from around $2.0 to $1.7.