Wednesday, August 17

Bitcoin drops R$20,000 in less than 24 hours and returns to $58,000

Bitcoin price is falling this Wednesday (27) to its worst price in recent days, with a sharp drop in the market that caused great damage to those who operated leveraged.

Compared to the Dollar, the price of $58,000 turned out to be the currency’s worst quote since October 14th. The digital currency broke the historic high, which today stands at $67,000.

Thus, in the last 24 hours the currency has seen a 6.30% drop in its main trading pair. This factor weighed against other currencies such as the Real as well, affecting practically the same proportion.

That’s because, in relation to the Brazilian Real, Bitcoin drops 6.5% in the last 24 hours and loses around R$ 20 thousand of its quotation. This giant drop was not seen for a few weeks, but for an analyst the move could be important.

Trader who forecast Bitcoin price sees price drop as “classic”

In recent weeks, the price analysis by PlanB, an anonymous internet analyst who predicted Bitcoin would be quoted at $63,000 at the end of October, has regained traction.

With a scenario that was going to nail his analysis for another month, after he got the last ones right, he even remembered that the price is heading to US$ 100,000 in December.

However, to reach the target traced by him the path is not linear, therefore, it is likely that the Bitcoin quote will take a step back at some point. In a publication about the market drop, he said that this is a classic move, as it eliminates leveraged buy positions in the Bitcoin market.

Thus, after that, the tendency is for the Bitcoin price to rise, and small traders should be careful with the “stoploss” trap, according to PlanB.

But the falling price did not really worry the market, which reacted naturally to the movement and showed no fear, according to the “Fear and Greed” tool, which continues with an optimistic scenario on Wednesday.

Bitcoin Market Fear Indicator as of October 27, 2021 /Credit:

Even with the optimism still present in the market, the drop could eventually cause fear in investors if it remains for too long.

As is natural for the market, with the fall of Bitcoin the main altcoins also plummeted, with the dominance of BTC still in 45% of the sector.

New opportunity for those who didn’t buy?

If the fall of Bitcoin came with force for many people, for others it could represent an opportunity to buy at a cheaper price.

According to trader Alex Krüger, the Bitcoin price was sideways before the fall, which did not present a good time to buy. With the movement this Wednesday, outsiders can find good opportunities for a possible purchase in the market.

It is worth remembering that buying Bitcoin in a fall also requires knowledge and study, as it can cause heavy losses, and each investor must draw up a strategy with good risk management.