A crypto expert has explained why a Bitcoin withdrawal (possibly up to about $40,000) isn’t a bad thing. This is because there is one growing concern that the flagship cryptocurrency could soon lose all the gains it has made recently.
A Bitcoin correction is necessary
In a after On his He went on to say that Bitcoin’s volatility is “a feature, not a bug.”
He made this statement in connection with his claim that the crypto token has doubled in two months without any pullbacks. although it is not exactly doubledHowever, Bitcoin has seen a significant rise in recent months. This is possible thanks to the possibility that the Securities and Exchange Commission (SEC) will approve the agreement ongoing Spot BTC ETF applications.
This impressive rally has indeed taken place, with the flagship cryptocurrency barely experiencing any pullback. The bulls have remained firmly in control, with the bears must suffer of this, as many continue to face heartbreaking liquidations. But like any other asset, a correction is always expected at some point, and that could be now.
BTC price recovers above $42,000 | Source: BTCUSD On Tradingview.com
A BTC correction is already taking place
Bitcoin is already facing a retracement as more longs than shorts have been liquidated in the last 24 hours, according to facts from Coinglass. In an earlier X messageClemente had warned that there would be “sharp corrections down the road as the market shakes off the greedy, leveraged longs.”
Meanwhile, the reason for Bitcoin’s breather could also be due to those waiting on the sidelines for the outcome of the Bitcoin crisis. macroeconomic events happening this week. This includes the CPI inflation data that will be released on December 12 and will be closely followed by the FOMC meeting on the same day and December 13.
Many will hope that the outcome of these events is quite positive, as that would further fuel the bullish sentiment currently echoing in the crypto community. Whatever happens, this sentiment is not expected to wane as many still have their sights set on January when a Spot Bitcoin ETF could be approved.
Liquidity is also flowing into the ecosystem, with digital asset investment products experienced their 11th consecutive week of $43 million inflows. Bitcoin remains the main focus of these investors, with the flagship crypto token seeing an inflow of $20 million.
At the time of writing, Bitcoin is trading around $42,000, down in the past 24 hours. facts from CoinMarketCap.
Featured image of Navi, chart from Tradingview.com
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