After marking a new all-time high (ATH) above $ 58,000, the price of bitcoin began this week by falling more than $ 5,000 in a matter of hours. Now below $ 53,000, the cryptocurrency struggles to stay above $ 1 trillion in capitalization, a milestone recently reached.
At its lowest point so far this Monday, February 22, the price of bitcoin fell to $ 51,900, according to TradingView records. Compared to the opening price of the day, about $ 57,500, bitcoin lost up to $ 5,000 at that point.
At the time of writing this article, the price of bitcoin (BTC) is hovering around $ 52,000 with a drop of up to 8% in 24 hours. At that level, cryptocurrency is under $ 1 trillion in capitalization, which arrived last Friday, as reported by CriptoNoticias.
With this setback, bitcoin is at almost 10% of the ATH set this Sunday, in data from CoinGecko. According to this source, the maximum price was 58,640 dollars and then it has fallen back considerably to levels of three days ago.
Bitcoin has dropped below $ 52,000 this Monday, February 22. Source: TradingView.
Despite being below a trillion dollars in its market capitalization, BTC maintains its position as the eighth most valuable asset in the world, ahead of the Chinese company Tencent, the most important in the Asian country related to the internet.
The entire cryptocurrency market has suffered from the bitcoin crash. For example, ETH and binance coin (BNB), second and third according to market capitalization, have lost between 9% and 13% between this Sunday and today. From the top 20, only ripple (XRP) and Crypto.com (CRO) have profit, with dogecoin (DOGE) barely holding on.
Consolidation phase of bitcoin over the trillion dollars
Although the drop from ATH hovers around 10%, BTC’s pullback could be nothing more than a correction before hitting higher price levels. Many analysts agree that this is just the first stage of a much larger bull cycle, in which they forecast bitcoin over $ 100,000 in the coming months.
Willy Woo is one of them. And precisely this Sunday, he assured via Twitter that we are facing the consolidation stage of bitcoin as a 1 trillion dollar asset. “Let’s enjoy the view and don’t panic, this moment will be fleeting,” wrote the analyst recognized for his development of metrics to study the behavior of bitcoin in the market.
This position seems to coincide with Glassnode’s analysis recently reviewed in this newspaper. With a series of graphs and various research approaches, the firm concluded that the end of this upward cycle has not yet been reached, although the transition of the flow of bitcoins from long-term to short-term investors seems to have arrived.