Today, altcoins have seen double-digit gains as the Bitcoin price has risen from the last bottom level to more than $1000. But this may not last long. BTC, which lost the $16,500 level at the time of writing, is finding buyers at about $16,300. Even worse, a few hours ago there was a negative development that could push the price down.
Crypto Coins May Fall
In the news related to the unemployment data we published recently, we mentioned the old BTC that took action in the Coinbase wallet. This movement was reflected as a high CDD on the on-chain side. As expected, following this development, the investors who followed the chart started to sell. Below you can see the graphic shared by Brother Peace. High CDD often causes Bitcoin and other crypto currencies to experience rapid losses.
Although there are exceptions, Bitcoin finds buyers at $ 16,300 after this development, which caused a decline. Moreover, the FOMC Minutes will be announced in the coming hours. Investors should be prepared for the risk of a serious decline, especially in altcoins, and evaluate their positions according to their own risk profile. On-chain data often gives more accurate results than technical analysis.
Where Are the Crypto Coins Going?
Considering the events we have experienced in the 6 months since May alone, we must face the fact that it is one of the most difficult periods in crypto history. Bitcoin has experienced a decline of over 80% from the ATH level many times in its history. If we take the peak at a flat price of $69,000, Bitcoin should go down to $ 13,800. At least, this is the widespread opinion of many investors and analysts. This is seen as a reason why the bullish sentiment cannot expand at the base. In other words, the Bitcoin price is still considered more valuable than it should be.
A significant part of the altcoins experienced Decays between 85% and 90%. However, in a world where Bitcoin will experience an 80%+ decline, they must face losses of 95%. In addition to all this, we have witnessed all the disasters that we must face in order for Bitcoin to experience a decline of over October 80. Investors experienced the feeling of showering with boiling water when checking the market in the morning every few weeks.
Hundreds of millions of dollars were stolen from the Ronin bridge, billions of dollars were hacked in the DeFi area, and many giants such as LUNA and Celsius went bankrupt with its chain effects. In November, FTX, Alameda and its 135 subsidiary companies, which also hatched a surprise egg, became bankrupt. Not only that, the largest player in the crypto industry, DCG, has suffered a serious injury from the recent FTX collapse, and it is still unclear what the fate of Genesis will be. Many large-scale stock markets have had to contend with medium-sized “bankruns” in the last 15 days.
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