"It's going to fall again, but you can't buy it again when the price is discounted."
The cryptocurrency market was red-hot at the opening of the Asian session this morning as the price of Bitcoin (BTC) tumbled as high as $56,723 shortly after the German government transferred more than $300 million to the digital asset exchange.
Additionally, wallets tracked by Arkham Intelligence showed Mt.Gox wallets running test transactions by transferring $25 in BTC across three transactions to different wallets which also contributed to the selling pressure across the crypto market.
Following BTC's significant fall, more than 74,000 traders have liquidated approximately $208 million in which the majority of them are investors who hold long positions betting on price increases.
The crypto market including BTC was also affected due to the recent speech of Federal Reserve (Fed) Chairman Jerome Powell and the minutes of the Federal Open Market Committee (FOMC) meeting which confirmed the hawkish stance of Fed officials regarding interest rate cuts this year.
According to Markus Thielen, an analyst at 10x Research said that the sudden drop witnessed by BTC may be just the beginning of a follow-up in which the price could slide further up to $50,000 which would form a double-top pattern.
While leading crypto analyst Michael Van de Poppe predicts that the price of BTC will fall below the May 1, 2024 low of $56,000 to collect demand side liquidity before continuing its decline to $52,809.
As of this writing, BTC price has plunged by 3.1% at $57,226 in the last 24 hours with a market cap of $1.1 trillion and has recorded a 7.47% decline over the past week.
