Bitcoin has dropped below $30K for the first time since January 4 following a massive selloff, which knocked off 15% of its price in 24 hours.
Bitcoin and crypto markets are bleeding out this Friday morning as the selloff which initiated on Thursday, January 21, has continued with fervor into the Asian trading session.
Bitcoin has shed a whopping $6,500 since the same time yesterday as it dumped to $29,000. The intraday high for BTC was $35,500 according to Tradingview, and it has currently reclaimed the $30k level.
First 30% Correction In 2020-2021 Bull Run
Since its all-time high of $42,000, which was recorded on January 8 this year, Bitcoin price has corrected 30% to current levels which is not uncommon when looking at previous market cycles. Corrections are healthy and need to occur however the speed at which things dump on crypto markets will have the uninitiated in a spin. During the most recent 2017 bull-run, there were numerous 30% corrections along the way to the December 2017 all-time high level.
Bitcoin bulls such as RTâ€™s Max Keiser are certainly not worried and will view this as a buying opportunity;
Buy these cheap sats yâ€™all. Iâ€™m stackin hard! pic.twitter.com/f2VMyTVv7F
â€” Max Keiser (@maxkeiser) January 22, 2021
Technical analyst â€˜Altcoin Sherpaâ€™ said that a larger correction and formation of a base where the asset consolidates for a while is bullish for longer term gains.
â€œPersonally, I would love for a big base to be formed and for price to go a bit lower. The bigger the pullback, the larger the base and thus a higher % chance of $BTC going to 100k+ in later 2021 IMO,â€
The $30k zone must hold, however, and previous bounces have led to lower highs indicating that the correction is not over yet. A break below this level could see the asset retreat 40% which puts it back at the 25k level.
â€” Cheds (@BigCheds) January 22, 2021
Stock-to-flow model, â€˜PlanBâ€™, was unconcernedly pointing out that his price model is still on track, even with a 30% correction.
â€œ$31.5K bitcoin feels low compared to $40K â€¦ but did you really expect BTC price to front-run S2F model already? S2F model is right on track, like clockwork. Patience!â€
Crypto Market Bloodbath
As expected theÂ altcoin lemmingsÂ are following their big brother into the abyss. Total market capitalization has retreated by almost $150 billion over the past 24 hours and is currently around $870 billion according to Coingecko.
Ethereum, which isÂ still makingÂ solid staking progress, has lost a similar amount to Bitcoin, dropping 15% in a fall back to $1,150 as of now, after touching $1050 as the daily low. Polkadot fell below $16 in an 11% slide.
Double-digit dumps are across the board for the majority of the altcoins with Cardano, Bitcoin Cash, Chainlink, and Stellar getting whacked a little harder.