Bitcoin is dumping, what's the possible reason?

[steampunkz]

It is happening now, surely there are people who are panic selling their BTC because of the overbought, I'm guessing the price be down more to 45k USD to its resistance.

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[Lucius]

Honestly I don't think slightly less terrible yields or slightly strong dollar would affect Bitcoin - nothing has changed about them macro environment. This is just a weak hands shakeout. A panic selling bear trap probably caused by some big players taking profit who can now buy back in lower. Likely since Bitcoin went from like $50k to $58k in like 3 days. Just a dip for smart investors to buy into.

It’s possible of course, obviously some can still very easily create a panic and start a sale like this, just so we don’t forget how volatile BTC is. However, I do not think that anything that happens with the US dollar should be completely ignored - nor with the stock market. If anyone thinks Elon Musk invested $1.5 billion in BTC because he likes it - then he’s completely wrong - because in his tweet he says :

To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.
However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.
Bitcoin is almost as bs as fiat money. The key word is “almost”.

[Kelvinid]

It is happening now, surely there are people who are panic selling their BTC because of the overbought, I'm guessing the price be down more to 45k USD to its resistance.

Shall we call this the end of the bull run already?

I guess this is the biggest dump of bitcoin so far, already down, at $45k and it keeps dumping.
Nice call OP, it seems like your post was timely and this is a real dump IMO.

Watching the dive here https://www.binance.com/en/trade/BTC_USDT

[vintages]

Well now, its below the price of $50k and some people are pointing fingers at Elon Musk recent tweet. Full article here: https://www.google.com/amp/s/www.cnbc.com/amp/2021/02/22/bitcoin-btc-price-down-10percent-after-elon-musk-says-prices-seem-high.html


I can't simply agree or disagree to it, cause I believe other market behaviour could have affected it. Though its disliking how one man keeps shifting the direction of a universal coin. But in all, I am not worried cause I believe a market correction is needed.

[MCobian]

What happens to Bitcoin now is just an normal correction, because correction is needed so that the next Bitcoin price increase is healthier. Now is
the right time if we want to buy Bitcoin at dips, so there's no need to panic seeing the current Bitcoin price drop. If we have money we can immediately
buy Bitcoin at the current price, which I think Bitcoin price is now quite low.

Moreover, all of us in this forum know that the price of Bitcoin is volatile, so it can rise suddenly and the price of Bitcoin also can fell suddenly. This is
not something to worry about, because the Bitcoin price may not continue to rise. Correction is required in advance, so I'm sure Bitcoin will recover
in the near future. We just need to be patient right now.

[Poker Player]

I agree with the other fellows who think this is a normal correction, period. The reason is we can't up forever without drawbacks. Some of them are going to be small and some other bigger but for me this is within what was to be expected.

[davis196]

1.There bullish news about Tesla and Apple are gone.The large Bitcoin whales are pretty silent these days.
2.The support for a 60K USD price is gone,so most of the big traders decided to sell and cash out the profits.
3.The selling pressure caused some panic selling and probably an avalanche of automatic stop loss orders.
I don't know what will happen,but we have to get ready for a nosedive back to 30K USD or even lower.
The December-January Bitcoin price bubble is about to pop...Which isn't something bad.The price will return back to 50K USD by the end of 2021(if nothing bad happens to BTC).

[bryant.coleman]

Classic march fever incoming.

It is applicable for investment in stocks and mutual funds, and I assume that it may have some impact on the cryptocurrency market as well. People usually sell some of their stocks in March, since it is the last month of the financial year. They do this in order to keep capital gains low for the next year. In a few cases, investors book losses on some of their investments in order to keep the capital gains low for that particular year. In many of the countries gains from Bitcoin trading is regarded as capital gains and therefore this may be applicable in the Bitcoin sector as well.

[sgbett]

I would think the BTC correction was those in the know before the NYAG announcement

[Wilhelm]

Classic march fever incoming.

+1 merit. Interesting insight into yearly patterns  

Can't wait for the 300-400%. That would make about $200k 

[onecall123]

You can't expect green constantly without any correction. We have experienced exceptionally growth, and this is what to be happened. This is crypto and you don’t expect it only goes one way.

[Oceat]

You can't expect green constantly without any correction. We have experienced exceptionally growth, and this is what to be happened. This is crypto do you don’t expect it only goes one way.

Exactly! Bitcoin is surging straight to $58k this past few days but after that stop it then back to its current price when the pump happen. Due to the correction the price went down plus those weak hands are selling too that makes the market to decline fast as we have seen the price now it's back to $48k. Just like that, weak hands are dumping not knowing that the total volume of Bitcoin is still in 1T. This drop might continue till March or so and I think it's getting ready to pump big if large institutional investors is going to buy the dip.

[uneng]

Some people are saying this is the reason:



Lol, this Elon Musk hype is really getting absurd right now. These fanboys are full of blasphemy trying to turn the guy into a semi-god kind.
The investment Tesla did was great for bitcoin, but to say a tweet from Elon Musk is enough to drop a whole market is insane.

[batang_bitcoin]

Classic march fever incoming.

Legit.
We're now going to have a comparison between last year's March and this year's upcoming March. If the same thing will happen for this year, then, what's more, to wait until the end of the year. It's necessary to happen so the skyrocketing would be the same as last year too.
That's an interesting chart for every year's March.

[sgbett]

You are all so funny with your "tea-leaf reading explains price movement" have fun explaining tomorrow!

[SquallLeonhart]

I think March could be a bad month but look at April, it is actually a quite good month, and we are going to live a great period thanks to that, plus in 2020 we didn't have just 25% loss for sure, in march price was at around 9k and reached as low as under 4k, that was more than 50% fall, maybe start of it and end of it might had something different but in the middle it was a huge fall. So, I believe march as always could be a bad month, but that will prepare us for the great month for April as you can see here.

Buy as much as you can during March month, find money somewhere and get in, because during April you are going to probably make it all back. Worst case situation? You will make it back in a year or two, and yes waiting that much would suck but you would still be in profit and that is a great deal for me, I am going to go in the more it goes down.

[Lorence.xD]

You can't expect green constantly without any correction. We have experienced exceptionally growth, and this is what to be happened. This is crypto do you don’t expect it only goes one way.

There is also some rumors at whalealert that there is a big transaction going on and the dump will soon be happening. I don't really mind this dump, in my opinion, this isn't enough because some people still find the current price for them to buy so they can hodl expensive, I want this dump to go lower because I have a silly theory that the lower it goes down, the higher it will spring back up.

[magneto]

Pretty normal considering the excess froth in the market.

I do believe that prices are somewhat inflated right now and the market action is dictated by mostly FOMO rather than any sort of logic or sense, but that doesn't mean that I don't believe the bull market will continue on further - it likely will given the average length of past bull markets acting as an anchor for market expectations, which becomes a self-fulfilling prophecy.

For long term bagholders this should barely concern you. These short term fluctuations do not improve BTC's fundamental usage case as a store of value whatsoever. For short term traders who are in the green, perhaps consider starting to deleverage while you're ahead.

[Kasabus]

I don't see any reason but I was happy to see the trend changing its course because I was thinking that this could also affect the huge fees but there is nothing had changed. The high fees still remain and even growing, I was wrong.

But anyway, it is really hard to say what will happen next or to say it was a normal scenario. We sometimes tell ourselves that we are wrong thinking that we are not able to reach $50k. The same way to think that it is impossible for the huge dump. It is everything that seems unpredictable and it guaranteed nothing either be a dump or a pump.

[suzanne5223]

This is a serious dump in the price of the market and I dont think we should be bothered by it cause I believe we all know it will definitely happen sooner or later but what I don't understand is people complain when the market is a dump and feel happy when the market pump in price.
Having said that, I heard that Wall street are behind the dump in price and the best we should do is seized the opportunity the market present.