Bitcoin Is trying very hard to hit $23,000
The battle between Bitcoin price and the $23,000 mark is still ongoing as the cryptocurrency is battling bearish selling pressure for the third straight day.
A few days ago when Bitcoin reversed from the neighborhood high of $24,280, we first noticed a reversal. There is a cause for such a sharp decline in value. Following the reversal, the market encountered several significant inflows, which led to a further decline in price below $23,000 all the way down to the $22,300 price level. Fortunately, the drastically oversold Bitcoin didn’t crash back into the consolidation zone. Fundamental aspects are still unimportant.
The Tesla Incident
The industry’s biggest “bad” news this week was Tesla’s decision to reduce the supply of Bitcoin on its balance sheet by 75%. The decision to sell the company’s available BTC holdings was made with no regard for the state of the cryptocurrency market. Rather, it was made to restore the company’s positive cash flow.
The market had already felt the repercussions of the enormous $900 million sell-off, and Musk’s decisions no longer had the same impact on the market as we had previously seen, therefore Bitcoin remained unaffected despite the size of the sale. After the Chinese government imposed restrictions on cryptocurrency mining and trade, Bitcoin fell 10% today.
Numerous unfavorable reports have had an impact on bitcoin. The U.S. and many European nations have increased their surveillance on Binance in recent weeks, making it the most heavily regulated bitcoin and cryptocurrency exchange in the world by volume.
What is happening to the bitcoin price?
Everyone expected the correction for a while now. It isn’t really related to China’s crypto prohibition. The recent downturn was not a surprise because money had already started to leave Bitcoin because of its skyrocketing value. In the past, we have seen Bitcoin move down first, then other coins like Ethereum and Binance coins, etc. would rise. Given that there is still a chance that the market may rise, it is currently impossible to estimate how low Bitcoin would fall in the bear market.
Bitcoin’s mining difficulty has decreased by 5.01 percent, the largest decrease of the year. The biggest cryptocurrency has now experienced three straight days of negative difficulty changes. The last time this occurred, the mining sector was in shambles due to the China ban that drove local miners to leave their communities a year earlier. The difficulty of Bitcoin fell by a startling 27.94% over a single adjustment period in July of last year. It is still the greatest decline that we have seen. However, the network was able to bounce back quite quickly, and the United States overtook China as the world’s leading destination for Bitcoin miners.
The price of bitcoin has plateaued at just above the psychological level after falling below $30,000 in recent weeks, but many cryptocurrency market observers are concerned because it hasn’t made any real progress since its May meltdown.
