Bitcoin (BTC) Burrows Under $8,000, Sharp Correction Possible
BTC prices look shakier, and a dip is expected before a new rally materializes.
Bitcoin (BTC) is looking on the verge of another sharp correction. BTC slid under $8,000 for a second day in a row, this time as a more permanent trend, with significant selling early on Friday.
BTC traded at $7,966.77, dipping below Thursday’s lows at $8,004. The drop accelerated, with volumes exceeding $15 billion in 24 hours. This shrank the BTC market cap dominance to 66.1%, getting farther from expectations for going above 90%. Altcoins are still holding on, though a deep quarterly correction is not out of the question.
The expectations for BTC remain almost the same - for a significant dip of about 40% before the next rally, fueled most probably by the halving of the block rewards.
The most recent sell-off was preceded by several significant BTC transactions to exchanges, including a 10,000 BTC haul sent in to Binance.
The significant transaction deepened the expectations for massive selling. But for now, BTC is still within a small distance to its level of stability. The Bitcoin fear and greed index remains unchanged at 40 points, as the recent seling did not erase much value. One of the reasons for the lack of extreme fear is the expectation that even a price dip may actually be bullish in the longer run.
In the past month, no new Tether (USDT) were minted, but nearly 100 million USDC entered the market. The BTC market is also getting influenced from the highly active Binance futures market. Still, during the sell-off, USDT was used to park the funds in a more predictable asset. More than 70% of all BTC volumes were against USDT.
While BTC retreated, several altcoins continued with their short-term rallies. XRP jumped toward $0.29 in a bout of enthusiasm. Chainlink (LINK) also recovered toward $2.38. Ethereum (ETH), however, had a deeper price drop to $172.49.