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The leading cryptocurrency, Bitcoin (BTC), dipped below $30,000, reversing the positive sentiment in the market. This drop in BTC price shattered the hopes of those expecting an altcoin season, and it is anticipated that BTC will climb back above $30,000.
Declining BTC Price
BTC experienced a 1.2% decline in the past 7 days and is currently trading around $29,900. Although the price drop was not significant in percentage terms, the critical factor here was the psychological support at $30,000. Following this decline, altcoins also saw similar retracements. XRP, for instance, experienced the sharpest decline with a 4.5% drop in the last 24 hours. This was followed by Solana with 4% and Tron with 3.6%.
The crucial hint for Bitcoin lies not in its price, but in its trading volume. BTC’s trading volume experienced a significant decline in the past 24 hours, dropping below $5 billion. This volume decrease indicates that the order books are currently thin. Previously, BTC could reach trading volumes of $10 billion and above, and it is now creating an expectation for news in the market. Typically, significant movements in volume, including volume dying down, are observed before a major news event.
Reasons for BTC Decline
The most significant development related to BTC in recent days came from the Craig Wright camp. Wright, known as the fake Satoshi Nakamoto, successfully appealed to the British courts and will continue his battle to obtain the “copyrights” of BTC.
This silence surrounding Bitcoin could also be attributed to the calm before the block reward halving. The block reward halving, expected to occur in 2024, will reduce the reward obtained from each block from 6.25 BTC to 3.125 BTC. While this is expected to have a positive long-term impact, historical charts show that a decline has occurred before previous block reward halvings. Analysts believe that this decline could be followed by a further decline and losing the critical support level for BTC could be an indicator of this.
The next critical level for BTC will be $24,000.
