Bitcoin set to hit $45K after market correction – Winter preparations could prove handy

Bitcoin is not doing so well today. As its price trajectory points towards the $45,000 mark, investors and enthusiasts alike are gearing up for potential fluctuations in the crypto market. 

As of this writing, the current value of Bitcoin (BTC) is $68,093.90, reflecting a decrease of 4.8% since yesterday and a decrease of 0.5% from an hour ago. Seven days ago, the value of Bitcoin was 0.2% lower than it is today. The 24-hour trading volume of Bitcoin amounted to $87,438,712,929.

Bitcoin tanks ahead of the weekend’s negative sentiment

Bitcoin continues to follow the conventional path to new macro highs, according to seasoned market participants. Despite heightened price volatility in close proximity to its all-time high of $69,000 in 2021, the ongoing Bitcoin bull run remains entirely unaffected.

Even if a significantly deeper correction were to transpire from the present levels near $68,000, this would continue to be the case. Bags, a pseudonymous merchant, discussed the forthcoming block subsidy halving in remarks published on X (formerly Twitter) on March 15.

pre halving pull backs:

1st cycle -38%

2nd cycle -38%

3rd cycle (ignoring covid wick cause outlier) – 38%

currently -38% off of $73.5k = $45.5K pic.twitter.com/DEbYwcIsx7

— Bags (@0xbags) March 15, 2024

He drew parallels to previous halving cycles, which were all characterized by significant price declines of nearly 40% prior to the event, which subsequently transformed into price discovery.

He wrote, “Currently -38% off of $73.5k = $45.5k,” calculating the potential downside from the most recent all-time highs of Bitcoin.

Bags responded to a question regarding the impact of spot Bitcoin exchange-traded funds (ETFs) inflows from the United States on the market, which were absent in prior cycles, by stating that every prior bull market had its own set of catalysts that ultimately failed to avert a decline.

Why has the crypto market tanked today?

Earlier today, the global crypto market cap tanked by 5.85% to $2.6 trillion, while market trading volume increased by 43.85% to $197.23 billion. A number of cryptocurrencies, including Bitcoin, have lost the value they have amassed over the course of weeks.

As of the time of writing, the global crypto market cap stands at $2.72 trillion, reflecting a change of -144.71% a year ago and -4.37% over the last 24 hours. BTC currently holds a market cap of $1.34 trillion, signifying a dominance of 49.28%. Stablecoins, meanwhile, have a market cap of $149 billion, or 5.47% of the total crypto market cap.

The crypto market is subject to surprise bear attacks even in favorable times. Most crypto coins have shown a similar element of witnessing a drop since yesterday. The best crypto investors and analysts believe taking a step back before aiming high is prudent. The market plummeted for three reasons: liquidation issues, market correction, and panic selling.

The Coinglass data shows significant liquidity issues for cryptocurrencies, including Bitcoin, Ethereum, and Solana. Until now, Bitcoin’s bullishness has aided altcoin performance, but as it has fallen from the $70K region, altcoins appear to follow suit. Over $666 million worth of crypto has been liquidated on the market. Long traders account for $531 million of that total.

When it comes to Bitcoin, liquidation totaled $246.66 million, with long positions accounting for $195.61 million and short positions accounting for the remaining $47.05.

The Ethereum Dencun upgrade has resulted in the coin’s price liquidation, totaling $116.07 million. Long-term investors are allocated $94.86 million, while short-term traders are allocated $21.21 million.

After years of low returns, crypto has made a comeback, with Bitcoin, meme currencies, and the remaining altcoins performing remarkably well. Ethereum had previously risen above the $4,000 level but has now fallen to $3,668. It is the same with many other cryptos right now. Following a great day in the market, a modest decline is usual, known as market balance.

As the market enters its finest phase in three years, investors don’t want to lose out on the best deal. Many altcoins have reached their all-time highs in recent days, and values may have changed as a result, triggering a panic selling situation. 

People would rather not miss out on the greatest price they can get right now than put the selling offer on hold for months in order to profit. Panic selling occurs when investors begin selling their tokens because they are concerned that the market will crash or decline. This pattern of selling eventually results in price decreases.