It has been almost a week since huge Bitcoins made their way out of a wallet. No doubt, it destabilized the rally to a large extent as the price fell massively below $27,000. However, despite the crisis appearing to have found a way, the BTC price continues to hover around $30,000, also revisiting the lower levels very often.
Why could the Bitcoin price not witness any relief even after the LUNA relief plan was recently let out?
One of the major reasons may be the fear which is hovering around the crypto space as people appear to be pretty much uncertain till now. And hence the Fear & Greed Index also has slashed to the rock bottom levels below 10 after a pretty long time.
It has to be noticed that the index had dropped to these levels way back in 2020, during the COVID-19 pandemic breakout in March 2020. Here, the BTC price was slashed below the rock bottom levels below $5000, tanking down by nearly 50% in a single day. Therefore, with the extreme fear in the market, no new funds may flow into the asset until the market conditions settle.
On the other hand, the other reason for the incoming BTC plunge is the Death Cross. As Coinpedia earlier reported is that Bitcoin’s 3-day death cross is approaching very fast, it has made a hit lately. Therefore, raising the concerns of a potential drop back towards the lower support below $27,000.
Earlier, whenever the asset witnessed the same situation, the prices fell largely by nearly 50%, and hence many people fear for yet another gigantic plunge. But the current scenario is slightly different. The markets are already exposed to extreme volatility which has dragged most of the assets down by nearly 50% since the beginning of May’s trade. Therefore, pointing toward the negative impact prevailing before the death cross.
Therefore, if the BTC price witnesses a plunge, it may hit the 2022 bottoms just below $27,000 and reignite a massive rally. On the other hand, the top 5 cryptos, Bitcoin, Ethereum, Tether, USDC and BinanceCoin account for nearly 77% of the global market cap and hence the price movements may largely impact the other cryptos ahead.