Why bitcoin Crashed on 21 jan 2022? What Next ?
Last night after hiting a high of $43,518.69 Bitcoin started falling down and supported itself at $38,250. Though at the time of writing BTC price is trying to recover but there is still a chance of another fall. If Bitcoin fails to hold the current position it may lead to another fall to a previous consolidation zone between $ 31,700 – $ 34,180.
There are still many crypto experts who are expecting btc to fall until $29k which will be a great news for the retail investors. This might be just a start and you were thinking why btc crashed.
According to coinglass liquidation data above $726 Million worth of crypto trades were liquidated in the last 24 hours which consisted of 190k traders. The largest single liquidation order happened on Bitmex – XBTUSD value $9.91M. A total of $293.43M worth of BTC trades are rekt in this fall.
What about the alts?
The crypto market follows Bitcoin hence, a huge surge in fall is seen in all the alts as well. Matic after a very long time fall below $2 where as wrx token touched the low point at $0.92. The market can be seen trying hard to come to green.
Expected reason for this crash
Bitcoin was hitting the critical support zone of $41,000 multiple times since 7th Jan. The more a support is hit, the more likely it is to break and that is what we saw today morning. BTC tried the same thing back in sep 21 however, was supported by the bull movement. This time bulls failed to hold the position and bears took charge.
What should the investors do?
The best strategy is to buy the dip, if you can’t just hold your positions be the 💎🙌 .
We always say “Keep some liquid” so that if a sudden dip comes you take encash the opportunity because if you try to fund your exchange during such period, you may fail due to high deposit request.
Can market recover from here?
Yes, it can. If the market wants to recover it must close above $40800, however if the market fails there is a huge chance that the market will go in the consolidation zone and then we can see another dip. Are you ready for another dip?
Are Bullish or Bearish? Let me know
