Bitcoin Loses $28,000 Handle – Is A Retreat In The Offing For BTC?

Christian Encila

2 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, was dealt a blow earlier today as it slipped below the $28,000 handle. The decline has sparked concerns among investors and analysts that the digital asset may be headed for a correction, leaving them to wonder whether it’s time to sell or hold on to their investments.

At the time of writing, Bitcoin’s price is $27,560, according to CoinGecko. The cryptocurrency has lost 2.5% of its value in the last 24 hours and has been on a 14-day decline of 1.5%. Despite this, Bitcoin has enjoyed a remarkable 30-day rally of 24.1%.

In this article, we’ll explore the factors that may be driving the retreat and assess where Bitcoin is likely to go from here.

Bitcoin Crosses $28,000 Mark, But Backtracks

Bitcoin had crossed the $28,000 mark earlier in the day, but the excitement was short-lived as the cryptocurrency retreated. The retreat may be attributed to a combination of factors, including profit-taking by investors who had bought Bitcoin at lower levels and a general sentiment of uncertainty among traders.

Reasons For The Retreat

Bitcoin’s retreat may be attributed to several factors. For one, the cryptocurrency has been on an upward trend for the past few months, and a correction was overdue. Regulatory pressures on cryptocurrency trading and the U.S. banking crisis may also be causing jitters among investors. Lastly, Bitcoin liquidity remains low, despite its eye-catching upsurge this year.

Conor Ryder at Kaiko has revealed that the liquidity of Bitcoin remains low, a clear indication that the cryptocurrency market is experiencing a downturn in trading activity. This lack of liquidity has resulted in slippage, which is the disparity between the intended transaction price and the actual price at which it’s executed, and it’s become increasingly problematic for investors.

As slippage rises, investors face the possibility of sudden, dramatic fluctuations in the market, creating additional risks that could further destabilize the cryptocurrency economy.

BTC market cap currently at $539 billion on the daily chart at TradingView.com

What’s Ahead For Bitcoin?

Despite the retreat, many analysts remain bullish on Bitcoin’s long-term prospects. The cryptocurrency has come a long way from its humble beginnings and has gained widespread acceptance as a legitimate investment asset. Many investors believe that Bitcoin’s value will continue to rise in the coming years, driven by increasing adoption and limited supply.

However, in the short term, Bitcoin’s price may remain volatile, with occasional corrections and dips. Investors are advised to keep an eye on Bitcoin’s price movements and to invest wisely, keeping in mind the risks and rewards of this digital asset.

-Image Source/Corbis

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.