Bitcoin’s Recent Crash Is Reportedly Triggered By This Factor
Bitcoin made the crypto enthusiasts crazy with excitement these days when the most important crypto out there was able to surpass the $10k psychological limit.
This level is extremely important because it can trigger massive FOMO.
There were various speculations as to why BTC surged, and they included the worldwide terror caused by the coronavirus, which led to BTC seen as a safe haven, retailers’ interest in crypto, and more.
But why did Bitcoin crash so fast the other day?
At the moment of writing this article, BTC is trading in the red, and the most important coin in the crypto market is priced at $9,753.00.
Bitcoin crash below $10k is reportedly not unexpected
CryptoDaily writes that the coin’s decline below $10k is not even that surprising considering the algorithms trading against each other.
‘We have now seen BTC/USD begin to crash but why is it crashing now? The reason it started to decline now has to do with how the algorithm was programmed,” the online publication writes.
They continue and say that if we compare the previous parabolic run un with the current one, we’ll see that this current cycle is 3.67 times shorter than the one before in terms of the days that it was necessary for it to come to fruition.
“A simple calculation shows that it would take BTC/USD 53 days to complete the current cycle if the same algorithm is at play and that is precisely what ended up happening!” the publication writes.
Someone commented this below the video: “great video and I agree with you about the similarity with the June 2019 fake bull run. However, if we compare it with the June bull trap, there should be another leg up, to touch the boundaries of the big triangle which is inside, just as it touched in June the 14k, there should be a touch on the 11.5k.”
More people on YouTube agreed that the market is highly manipulated.
Anyway, despite the extremely high volatility, there are various optimistic BTC predictions that keep coming.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.