On January 21, Bitcoin experienced its biggest recession since the market crash in March 2020.
Decrease in BTC rate by 13% erased a significant part of the growth for the current year, reducing this figure to 6%. During the collapse, the price dipped below $ 29,000 for the first time since January 5. At the time of publication, the leading cryptocurrency is trading at $ 30.8 thousand.
According to some analysts, yesterday’s downturn indicates that Bitcoin may have reached its short-term price peak and entered a phase of stagnation. They do not exclude a rollback of the rate up to support levels in the range of $ 20-24 thousand..
Bitcoin has experienced the largest recession in the past 10 months
Recent reminders from representatives of large financial companies about cyclicality and volatility digital asset could also induce investors to take profits. Since many people use Bitcoin as a tool to diversify their portfolio, a sell-off to minimize risk may be justified..
text: Ivan Malichenko, photo: depositphotos, chart: TradingView