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Bitcoin Price Dropped to $28,800, but Recovered

January 22, 2021 at 11:46 by Mark Stevenson

On January 21, Bitcoin (BTC) exchange rate fell by more than $5,000. The bears increased their pressure and the Bitcoin price nosedived from a high of $35,600 to lows around $30,000.

Notably, on the morning of January 22, the price of the leading cryptocurrency dropped below $29,000. On the Bitstamp exchange, BTC price reached a low of $28,800 at 01:00 GMT. At the time of writing, however, the BTC/USD pair managed to recover and is trading at $32,000.

According to some analysts, the significant drop in the price of the premier cryptocurrency was due to the profit taking by US and European traders.

For more than two weeks, the price of Bitcoin has been consolidating. On January 8, Bitcoin recorded a new historical high, soaring to $42,000, but then started to decline. On January 14 alone, the price of BTC surged again to $40,000.

Earlier, Scott Minerd, the director of investments at Guggenheim Partners predicted that the Bitcoin price will rally to $400,000 but cautioned traders about a possible correction. According to Minerd, if the decline in BTC is prolonged, and the price may drop to $20,000. However, according to Bloomberg analyst Mike McGlone, Bitcoin bulls may prevent the price decline:

The behavior of BTC is similar to the period May-June 2017, when the Bitcoin price consolidated in the $2,000-$3,000 channel, but then began to rise.

Against the background of the fall in the price of the flagship cryptocurrency, altcoins also declined. Thus, Ethereum, which had recently rallied above $1,400, fell to $1,050.

Earlier, EarnForex reported that during the previous price decline, institutional investors increased their Bitcoin purchases. Perhaps the same will happen in the current situation and the BTC price will quickly gain back losses.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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