The encryption market has withdrawn in the past few days. After a standard level of $ 111,900 last week, Bitcoin fell to $ 106,000, as investors reserved profits. The ups of the ups increased, and most of Altcoins has decreased. This article explains the cause of the accident and whether this is the end of the bull run.
Why the collapse of the encryption market occurred
The collapse of the encryption market occurred due to the achievement of profits between investors. Moreover, the price of bitcoin increased by 50 % of its lowest level in April to its highest level this month.
It is common for Bitcoin to decline and other assets after height to a decisive resistance level. There are many examples about this. For example, the BTC price jumped to a record level of $ 64,750 in April 2021 and then fell to $ 28,685 in June 2021.
After that it rose to the highest new level ever at $ 69255 in November 2021 and less than 20,000 dollars in 2022. In recent times, Bitcoin reached its peak at $ 73,783 in March last year, then decreased to less than $ 50,000 in August.
These decline processes usually occur as investors reserve profits and prepare for the next large movement.
Technically, the collapse of the encryption market occurs where Bitcoin is the handle section of the cup and processing style. C & H is a pattern consisting of a round bottom, horizontal support, and shoulder. The shoulder can occur for a few days or months, and it is often resulted in a strong upscale.
Altcoins falls due to its close association with bitcoin. When Bitcoin sneezes, the rest of the encryption market holds a cold. In most cases, if Bitcoin decreases by 1 %, many Altcoins will decrease by more than 5 %.
Commercial concerns and federal reserve studies
The collapse of the encryption market also occurred with concerns about trade and federal reserves. An American court ended the tariff of Donald Trump this week, but left it in place today. These definitions will remain in effect until the case will be concluded in the Supreme Court.
Also, it should be noted that Trump has other ways to implement the customs tariff even if the current failure.
The collapse of the encryption occurred after Scott Bessin stopped that China’s talks had stopped, and that it would now take a meeting between Xi Jinping and Donald Trump to resolve the stalemate.
There are also fears that the Federal Reserve will maintain the high interest rates for a longer period as inflation fears continue.
Was the encryption bull operated?
Therefore, the common question among most participants in the encryption market is whether the emerging market is now over.
We believe that Run Crypto Bull Run is still ongoing due to Bitcoin’s supply and demand. The demand for bitcoin continues to rise, as immediate trading investment funds have cumulative flows of more than $ 45 billion.
Meanwhile, Bitcoin supplies on stock exchanges decreased from more than 3 million in 2020 to 1.3 million today. The rest of the bitcoin is held in a cold governor.
Also, as mentioned above, Bitcoin has formed a cup style and handle, which means that it will soon get an upper outbreak. If this happens, there is a possibility that the other altcoins will refresh.
Warning is that the continuous price procedure can remain for a while as we enter the summer months. Historically, June is usually the worst month for Bitcoin. Therefore, monotheism can remain for a period of time before the final recovery.
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