What cause Bitcoin to drop up to 42k$?

[timerland]

I think that most of the reason can be attributed to straight up FUD.

The Evergrande crisis in China should have absolutely nothing to do with crypto, but people are way too overreactive and tend to assume that this is the case.

Plus, it'll be a similar event to COVID - the government will bail out the financial sector and there will likely be no harm done anyway.

[MiF]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

Again, Bitcoin is very volatile, so these ups and downs are par for the course. Don't gamble an amount that would burden you're family.Bitcoin today is rising up to 43k$ after reaching 40k$ so I think market is now slowly going back on its track to 85k$ to100k$ at the end of year 2021.

[michellee]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

Again, Bitcoin is very volatile, so these ups and downs are par for the course. Don't gamble an amount that would burden you're family.Bitcoin today is rising up to 43k$ after reaching 40k$ so I think market is now slowly going back on its track to 85k$ to100k$ at the end of year 2021.

It is good to see bitcoin is back to the green candle, but there is no guarantee that bitcoin can increase to the high price as the price can get dumped again. Maybe the bitcoin price is down because of something happening out there but we do not know what is causing the price to go down and only guess. Hopefully, this will bring a positive trend to the market so the price can increase more than now, although we might see another correction later.

[Taskford]

if you look at the current market conditions the potential for bitcoin prices to drop below $40k is very large. I don't know if this price drop is a normal price drop or an early indication that bitcoin is going into a bear market again. I hope the bitcoin price won't drop to this year's low of $29k as that could trigger an even bigger price drop.

It's nothing to worry about though, bitcoin's going to bounce back no matter how low it dumps in prices, even if we don't consider the movement normal, in the end, the hodlers are going to win especially those who continues to accumulate.

This is another typical movement of bitcoin and we will lose if we sell to early that's why its better hold if you buy at the top also accumulate at the dip to recover what you supposed to be lose when the price got dump although its easy to say this but we need to see what is the possible last dip to come and look where the strong support on so that we can hit the right spot to earn again once bitcoin bounce back after the dump happen.

[geegaw]

I think that most of the reason can be attributed to straight up FUD.

The Evergrande crisis in China should have absolutely nothing to do with crypto, but people are way too overreactive and tend to assume that this is the case.

Plus, it'll be a similar event to COVID - the government will bail out the financial sector and there will likely be no harm done anyway.

I think the stress is just a normal level of protection for investors, you can subjectively think that the impact from the Chinese real estate group is not so severe that crypto has to go into recession and drop but this ghost haunts other investors more, they feel the financial storm will erode value as well as force some businesses or individuals to sell assets such as crypto to stabilize losses from the Chinese stock index. But pretty quickly there were voices of encouragement from the banks and eased the worry, as you say, the government will have bailouts to not cause more damage.

[Ibrahim60]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

Though no one can surely predict on cryptocurrency. But i don't think that Bitcoin price will drop below 30k$. Bitcoin price is now so much volatile. Also in cryptocurrency price increasing and decreasing is a simple issues. When a lot of people sell Bitcoin by getting panicked by any negative issues or fake news or signals then the price going to decrease. Again when a lot of people or a lot of Bitcoin buying by people then the price going to increase. I think Bitcoin price will recover as soon as possible and again it will hit $50k.

[el kaka22]

I am 90% sure that it was the whales that wanted to manipulate the market, that seems like the most logical argument. I am not saying bitcoin doesn't drop without whales, it does drop but not this quickly and it dropped way too quickly for it to be retail investors.

It means that it was man made since it was that quick, one thing happened that caused it to go down and if it is one thing then how could it be thousands or even tens of thousands of people all together. Was there a party called "let's all sell our crypto all together" that thousands joined that I am not aware of? If not then it was whales that collectively got together and dropped it (or even maybe one big whale) which caused the drop. It is temporary and I am not worried at all, we will get it higher soon enough.

[eaLiTy]

I think that most of the reason can be attributed to straight up FUD.

The Evergrande crisis in China should have absolutely nothing to do with crypto, but people are way too overreactive and tend to assume that this is the case.

No idea whether the FUD was prevalent when the correction started, when the market was showing weakness i could not find any reason and then all of a sudden an article popped up about the crisis in China and people are turning to safer assets. These are all narratives that people always find whenever there is a correction and today the market is recovering.

Plus, it'll be a similar event to COVID - the government will bail out the financial sector and there will likely be no harm done anyway.

The government cannot bail out everyone, if they keep printing money then eventually they will reach a point of inflation.

[STT]

Profit taking is always a large part of action, mostly its best to look for triggers and this time it was the wider market I think combined with prior gains in BTC and volume still overhead at the highest prices for 2021 which has sellers in there who bought rashly now wanting to sell on these wider market doubts.

The mythical whales argument is unfortunate, most of the market action occurs through consensus.  A whale cant turn the tide, they will get beached on the shore even the greatest of animals can be stranded alone, if any trader leaves liquidity it ends badly for them.  Wider market is bigger then that idea of puppet master large buyers.

[Roidz]

I think that most of the reason can be attributed to straight up FUD.

The Evergrande crisis in China should have absolutely nothing to do with crypto, but people are way too overreactive and tend to assume that this is the case.

Plus, it'll be a similar event to COVID - the government will bail out the financial sector and there will likely be no harm done anyway.

I think the liquidity crisis of a property company like Evergrande Group makes investors and whales worried, and this makes the cryptocurrency market experience a price decline like what is happening now, the occurrence of liquidity for a large company like evergrande will certainly trigger worries for big investors and also whale, so they liquidated the crypto funds they had so far and of course this further exacerbated the price decline that occurred in bitcoin.

[mumang siat]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

Currently all coins are being corrected in the market, not even just bitcoin, for other coins to feel the current market correction, bitcoin prices will return to normal by the end of this year, if you look at the trend towards bitcoin in the past few months, then the opportunity will be very possible and I believe bitcoin at the end of the year will be above 40K $ or even more than that number, but in the crypto market anything can happen, both bitcoin and other altcoins.