Why is BTC Dropping Today? Is there any Further Growth or Will Bitcoin Price Enter a Corrective Wave?
The crypto markets have been largely consolidated since the early reading hours as the round of the US authorities cracking on the prominent players of the crypto space is making huge rounds. Presently, Bitcoin (BTC) prices have dropped by more than 2% after undergoing a giant rise of more than 15% and currently trading around $20,743 with a 21% jump in the trading volume, largely dominated by the bears.
However, Ethereum also dropped by almost the same margin but held crucial support at $1500, followed by BinanceCoin by 3.79%, XRP by 1.8%, and Cardano by 4.77%. Besides the global crypto market cap also suffered a drop of nearly 2.54% and is trading at $966.12 billion at the moment.
The upcoming Bitcoin trend appears quite misty as it continues to trade within a very narrow range, displaying the possibilities of heading on either of the directions. Therefore, it is extremely crucial to determine whether the BTC price may reach the desired target of $22,500 or just slip back below $20,000, owing to intensified bearish actions!
One of the well-known analysts, Micheal van de Poppe, believes in a bullish narrative but also expects a short-term plunge to fulfill the CME gap below $20,000.
Bitcoin is trading in a short-term bullish channel, wherein one can expect higher tops and bottoms in the short term. As these short-term targets are associated with long shadows a higher chance of a strong negative reaction may be imminent. The support of the channel is currently hovering between $20,720 and $20,840, and if the Bitcoin (BTC) price breaks down these levels, it may enter a corrective wave.