The entire cryptocurrency market has been going down ever since today, led by a significant Bitcoin sell-out from the big holders. But the question now is, is the sell-out over, or is it just beginning? Are we getting to see a significant correction this week? We only hope to have enough buyers who will keep Bitcoin's price above $50,000 to close out the week.
Today was a day of volatility, and we are certainly paying the price for that bullish performance we have been getting from Bitcoin.
Bitcoin went down by 20% in a short time, it was bought off very quickly, but it's still dropping. Billions of dollars worth of longs were liquidated on the major exchanges; this is one of the most significant daily liquidations ever. These sell-offs and correction periods, in the long run, are very healthy for the market. They help tame down the greed, reset the indicators, reset the market a bit, and calm things down.
We are now back to the price where Bitcoin was four days ago.
We could see Bitcoin coming back down to test some other vital areas of support in the days to come.
The area where Bitcoin bounced today at $46,700 is a fundamental level overall; it was an area of a lot of price confluence and support for Bitcoin.
