Bitcoin just took a nosedive, crashing below the $41,000 level in today's market.
This move, which has triggered a broader crypto slump, has everyone buzzing. Crypto detractor Peter Schiff didn't hold back, claiming that the flagship cryptocurrency is "getting a bigger beatdown than the Eagles!"
The key reasons behind the drop
Before Bitcoin's price slide, a few telltale signs popped up, according to on-chain analysis. Julio Moreno of CryptoQuant recently noted that the Bitcoin price had started overheating after a big rally above the $40,000 level.
Then there's Mara Pool, a big fish in the Bitcoin mining pond, that decided to cash in some chips after a recent high. This move suggests they're playing it safe, trying to lock in profits while dodging potential risks.
Another interesting bit: over half the Bitcoin out there was making money for its holders, a scenario that's often a prelude to some selling off at the top.
Brighter skies ahead?
Christopher Inks, a renowned trader, sees a silver lining. The altcoin market's recent dip looks like a short-term correction, hinting at potential gains on the horizon.
He points out that Bitcoin, after getting knocked down at the daily R3 pivot, found its footing at the R2 pivot and is now showing signs of a comeback.
For a true bullish wave, Bitcoin needs to keep climbing, especially past that R3 pivot. The R5 pivot is still in the game, especially if Bitcoin can cling to its newfound support level.