Last week, after breaking through the US$ 52,000 resistance, market confidence in the bitcoin was high, anticipating it would hit US$ 60,000. “However, from one day to the next, ‘things fell apart,’ and BTC had a sharp correction, almost reaching the US$ 42.7 thousand support”, noted Transfero’s Head of Crypto Prime Brokerage, Wander Guedes. In his assessment, the fall was a reflection of increased sales when the currency was at a higher level.
Among the reasons is that on September 7, El Salvador officially became the first country to adopt bitcoin as legal tender. On the same date, the BTC had a correction, which represents a classic example of ‘buy the rumor, sell the news’ in the financial market.
“The expectation that bitcoin would indeed become a legal tender in a country led many investors to buy BTC. So, the moment the rumor became a fact, many assessed their gains”, Guedes pointed out.
According to him, there was also the sell-off of miners, which impacted the global crypto market. As a result, more than US$ 418 billion was liquidated, as can be seen in the chart analysis.
“There was a fast recovery, with the bullishs taking advantage of the ‘buy the dip’ movement”, Guedes said. In his analysis, much of this recovery occurred through Altcoins, especially Solana, which saw its market cap reach the level of US$ 55 billion, reaching the top 6 position in the global crypto market.
“It’s always important to be aware of a possible trend reversal. However, despite the fall, there were no strong indications that we entered a downward move in this case. The proof is that in the last 24 hours [considering the date of September 9, when this article was written], the main instruments traded in the options were Calls”, pointed out the expert.
For Guedes, what happened last week was a one-off correction, “many investors even looked at it favorably, especially those who are now entering the crypto market and are looking for new buying opportunities, not only for bitcoin”. In his opinion, corrections are of key importance for bitcoin to reach new ATH (All-Time High) marks or record prices.
