The leading cryptocurrency Bitcoin dropped to $ 66,000 with a sudden drop in the morning hours. While this decline in BTC also spread to altcoins, Ethereum (ETH), Solana (SOL), BNB and Dogecoin (DOGE) also experienced similar losses.
SOL is trading at $184, down over 7%, while Dogecoin is down as much as 9%, falling to $0.189.
While this sudden and sharp decline in Bitcoin and altcoins made investors nervous, it became a matter of curiosity whether the decline would continue.
At this point, Bitfinex analysts speaking to Coindesk stated that the decline was due to some long-term investors selling.
Stating that they expect BTC to consolidate and stay in a certain range in the coming weeks, Bitfinex analysts made the following statements:
“We experienced a sudden drop as previously dormant BTC supply, particularly among Long Term Holders (LTHs), was sold off (albeit on a relatively smaller scale than previous bull market peaks).
At this point, we believe that Bitcoin will probably continue to consolidate within a certain range in the coming weeks.
Because strategic profit-taking is observed among the LTH cohort (BTC holders for more than 155 days).”
“Investors Are Cautious About Bitcoin!”
Apart from Bitfinex analysts, FxPro senior analyst Alex Kuptsikevich also shared his Bitcoin expectations.
Stating that Bitcoin is facing resistance at the $ 71,000 level, the analyst stated that the decline occurred due to the broader markets being cautious against risky assets.
“Bitcoin's fourth attempt to break above $71,000 this week has failed.
Although the S&P500 closed at another high, the Nasdaq100 is trending slightly lower. This trend and the recent decline in Nasdaq100 are indicators of a cautious attitude of investors towards risky assets such as BTC.
“Due to this trend and cautious approach, Bitcoin found strong resistance at $71,000, and the $69,500 and $68,500 thousand levels attract our attention.”
*This is not investment advice.