Why did the price of Bitcoin plummet below 41,000?

Mondo Finance Updated on 2024-01-29

In yesterday's market, Bitcoin just experienced a **, falling below the $41,000 level.

The move sparked a broader cryptocurrency slide that attracted a lot of attention. Crypto critic Peter Schiff has made no secret of the fact that the digital currency that dominates the crypto market is "taking a worse hit than the Eagles!".”

The key reason behind the decline

Before Bitcoin***, there were some clear signs based on on-chain analysis. CryptoQuant's Giulio Moreno recently noted that Bitcoin is starting to overheat after a significant increase above the $40,000 level.

Then there's Mara Pool, one of the big predators in the Bitcoin mining space, who decided to cash out some chips after the recent highs. This move shows that they are acting conservatively, trying to lock in profits while avoiding potential risks.

Another interesting phenomenon: more than half of bitcoins are making money for their holders, which is often a precursor to selling at the top of the market.

Maybe we can see the sun in the future?

Renowned trader Christopher Inks sees a silver lining. The recent minor correction looks like a short-term correction and hints at possible gains ahead.

He noted that Bitcoin has found a foothold in the R2 pivot after the daily R3 pivot was hit and is now showing signs of **.

To achieve a true bull run, Bitcoin needs to continue to climb, especially beyond the R3 pivot. The R5 pivot point is still in place, especially if Bitcoin is able to hold its newfound support level.

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