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Bitcoin Drops by 18% to $32k, Pushing the Crypto Market Cap Below $1 Trillion

Bitcoin 2021/01/11 16:36 by Bernice Nyambura
Bitcoin Drops by 18% to $32k, Pushing the Crypto Market Cap Below $1 Trillion

The total market valuation of the crypto market has dropped below $1 trillion as bitcoin dropped by almost over $7,000 from above $40K to $32.8K earlier in the day, according to data by CoinMarketCap.

The top coin dipped massively after showing signs of consolidation above $40K in what seemed like a much-anticipated dip that saw investors aggressively buy the dip and push its price above $36k.

Bitcoin Drops by 18% to $32k, Pushing the Crypto Market Cap Below $1 TrillionBTCUSD Chart By TradingView

According to on-chain analysis platform Santiment, Bitcoin is showing strong signs of bouncing back together with key altcoins.

“#Bitcoin dropped all the way to $32.6 two hours ago, and now appears to be bouncing back in a big way alongside many #altcoins. If a dip was being waited on, it appears to have been scooped up rapidly as $BTC trading volume is steadily rising.”

Bitcoin Dip Was Expected

At press time, bitcoin is down 15.9% trading at around $32.6K in the biggest dip of 2021 and with a market cap of $613 billion. On Twitter, crypto analyst Crypto-bird affirmed that this dip was one of the many that are to be expected between January and February.

“That might be one of those fancy 30-40% $BTC retracements I was telling you to expect in January-February.”

As reported earlier, Bitcoin advocate Pompliano advised investors that such high volatility will occur along the way, but Bitcoin’s long term value, a store of value remains unaffected.

According to crypto analysts Bitcoin LIZ, the ongoing dip is healthy and investors need only to trade strategically instead of being influenced emotionally by the market.

“EVERYONE was buying #Bitcoin at #41000 because of FOMO now at $35000 no one dares to because it’s gonna go lower. This dip is healthy. It’s what we need. Just follow your strategy and don’t follow emotions.” 

Another analyst, whale Map, also estimates that if bitcoin drops below $30K, there is a great support area above $29K but a further drop and consolidation below $28,728 could signal the start of a bear market.

“Great support at $29,315.wicks to $28,728.Looks solid. Consolidation below $28,728 is a bear sign.”

Analysts Advise Against Panicking

Data by on-chain analysis platform CryptoDiffer shows that a total of $2.5 billion was liquidated across exchanges in the last 24 hours. On crypto exchange BitMEX, $241,915 people converted their crypto assets into cash including a single order that liquidated $8.72 million worth of BTC.

Crypto Analyst and trader Michael van de Poppe says that according to charts, a decreasing amount of BTC on exchanges is a bullish sign.

“This chart tells you that the amount of #Bitcoin on exchanges decreased heavily during the entire run. And is still decreasing. Those investors don’t sell on this 15% drop, neither should you. It’s an investment.”

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