Bitcoin’s price may have dropped to $21,000 but analyst Willy Woo says that’s not a completely bad thing. The chain analyst said that Bitcoin’s recent drop to $21,000 was mainly due to traders selling off massively.
However, there is no reason to panic because the sell-off is associated with negative net flows on major exchanges, which suggests that most participants are looking to accumulate or buy for storage in their wallets.
According to data from Coingecko, the bitcoin price is at $21,418, down 12 percent over the past seven days.
No cash flow was observed during the summer on the main exchanges. Most traders just increase liquidity and avoid buying money cheaply.
While traders and investors maintained a positive stance and confidence in the price of Bitcoin despite the price drop, the significant drop in BTC to $21,000 is a clear illustration of the negative issues surrounding Bitcoin and Ethereum.
At this point, it is uncertain whether the bearish streak will continue as there is no indication that BTC has bottomed out.
With BTC making a rally, surpassing the 50-day moving average, the crypto king has reached new highs after a local correction spiked in both the cryptocurrency and stock markets.
As Willy Woo mentioned, the cryptocurrency market could go back to a prolonged consolidation period, which could be similar to what happened in 2018.
