Bitcoin (BTC) and cryptocurrency exchange Binance analyzed the recent plunge in the digital asset market and assured that such a correction does not necessarily mean that a downward trend has arrived. For the exchange house, it is a usual behavior in which the forces of supply and demand readjust.
Binance explained that during an uptrend, like the one the market is currently experiencing, there can be several corrections. The most recent one was reportedly caused by, among other factors, power outages at Chinese miners and over-stimulation of the market.
“Corrections happen in the cryptocurrency market, but they don’t always lead to bear markets. Several corrections preceded bitcoin’s rise to its last historical high of nearly $64,000 in April 2021,” the exchange detailed in a blog post (in Spanish).
The exchange reiterated that corrections like the one seen last week are usually followed by rallies. If this behavior occurs, the market could resume the bullish run that has lasted for the past year. However, if the corrections continue, then a more prolonged period of decline will have arrived.
As background, Binance cited what happened in 2017 when BTC reached $20,000 a pop. After reaching that milestone, the market’s leading cryptocurrency went through several corrections that eventually turned into a bear market that lasted for two years.
Born2Invest’s team of journalists gathers the most interesting business news in a single mobile application. It’s impossible to keep up with everything you’re interested in, but our companion app will help you keep track of the important news. Our app is being updated throughout the day with the most interesting news in the crypto sector and not only.
Bitcoin up or down?
For Willy Woo, a cryptocurrency market analyst, the upward trend in digital assets like bitcoin is intact. Despite the recent correction and subsequent volatility, the researcher believes that BTC is only “heating up,” meaning it is setting itself up for a much bigger rise.
Willy Woo’s main argument is that the number of users interested in bitcoin is increasing more and more, regardless of how it trades on the markets. “BTC users have roughly doubled every year since its inception a dozen years ago,” commented Willy Woo.
A different viewpoint is that of Venezuelan analyst Alberto Cardenas, who recently indicated that the rise in bitcoin’s price was due to extreme leverage. For the trader, this leverage would already be dismantled and BTC would once again have a downward trend that would take it to $20,000.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Mon Livret.fr, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Entrepreneurship: the Region Laâyoune-Sakia El Hamra Launches the Program RIYADA
RIYADA, the integrated program of support for project leaders who can benefit from PIAFE funding comes to promote the entrepreneurial...
Finlombarda Invests 1.5 Million in a Fund Promoted by P2P Lending October to Finance SMEs in Lombardy
In May 2020, the fintech company October launched a new direct lending fund dedicated exclusively to investments in loans to...
DeFi Projects Raised $200 Million in 2020 and $1 Billion since 2017
Geographically, between 2018 and Q1 2021, the largest funding to DeFi came from North America and Apac (80% of the...
Dirham Project: the World’s First Regulated Stable Currency
The team behind the project has implemented the dirham as a stable currency, the terms of the DAH protocol are...
Five Impact Investment Projects around the World
Impact investing gives investors the opportunity not only to earn a return on their money but also to have a...
Crypto6 days ago
Stablecoins: The New Kid On The Crypto Block
Cannabis6 days ago
Bill Authorizing Medical Cannabis Cultivation Advances in Brazilian Congress
Biotech6 days ago
Investing in Respiratory Therapies: Saving 30 Million Euros per Year
Crypto6 days ago
Bitcoin Mining Banned, Search Engines Ban Exchanges: China Cracks Down