Bitcoin Drops More Than 10%: Is the BTC Market Correction Here?

After hitting a new all-time high just over $34,000 on Sunday, the price of Bitcoin sunk to approximately $30,900 at press time, a decline of nearly 10.6 percent. While some analysts are saying that markets will shrug it off, others seem to believe that the end of the current Bitcoin rally is nigh (or indeed, that it is already here.)

“Welp. That's a wrap. See you all in 4 years!”, wrote crypto analyst, Joseph Young on Twitter after lamenting that “people will start blaming Asia again for this dip.”

Oh no, people will start blaming Asia again for this dip

— Joseph Young (@iamjosephyoung) January 4, 2021

Young also pointed out that “Coinbase is now trading $50 lower than Binance,” a factor that he believes points to a cooldown in retail energy. “This means the aggressive accumulation isn't there anymore,” he said.

”I Expect a Market Cooldown.”

By contrast, “a few days ago, Coinbase had a premium of around $150 to $350 at its peak,” Young explained. However, he believes that the downturn “doesn't have to be a correction,” but still, “I expect a market cooldown.”

“Whales in Asia have likely been selling $BTC heavily in the last few hours,” he added, pointing to an apparent “- 3,001 BTC (~$100 million) deposit into Bithumb.” At the same time, “all the while the futures market is very overheated and overcrowded.”

Coinbase is now trading $50 lower than Binance. This means the aggressive accumulation isn't there anymore.

A few days ago, Coinbase had a premium of around $150 to $350 at its peak.

Doesn't have to be a correction, but I expect a market cooldown.

— Joseph Young (@iamjosephyoung) January 4, 2021

”Consider the Bad Scenarios Too”

Joaquim Matinero Tor, a cryptocurrency observer and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term Associate at Roca Junyent, previously told Finance Magnates that he expected Bitcoin to see a serious drop in the month of January.

Specifically, “I think the price of Bitcoin will fall under 18,000 dollars and then rise back. Whale investors will sell once the financial year is over. So, January may be a rollercoaster ride for the cryptocurrency market,” he told Finance Magnates.

The decline in the price of Bitcoin also seems to be affecting the price of Ethereum. Ether’s rally is so strong that the total price is still up more than 20 percent over the last 24 hours. However, the price of ETH has shown a downward trajectory over the course of the last several hours.

Young tweeted that he believes a downturn in the price of Bitcoin could signal price drops in other parts of the cryptosphere later on.

“Bitcoin -> Ethereum -> alts -> DeFi bluechips -> correction -> DeFi mid caps,” he wrote on Twitter. “Beware of high Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term, manage your risks. Consider the bad scenarios too.”

Big sell-side pressure on $BTC is emerging on Binance.

A possible scenario that might be ongoing is Bitcoin -> alts -> market dumps altogether.

Beware of high volatility, manage your risks. Consider the bad scenarios too. https://t.co/gUI8AaKD2w

— Joseph Young (@iamjosephyoung) January 3, 2021

However, a downturn in the price of Bitcoin could give some hopeful investors the opportunity to jump into BTC at a lower price.