Bitcoin (BTC) and Ethereum (ETH) prices have risen sharply over the past week, reaching a peak over the weekend and then seeing strong corrections starting in the last week of February. The prices of both coins have fallen enormously in the last two days, but that does not necessarily mean that the rally is over.
The price of bitcoin is collapsing
Bitcoin has been in the media headlines for weeks and even months with new highs and new records. The coin ‘s current highest value reached on 21. in February, was $ 58,400. Over the past week, the coin began to rise from $ 50,000 to hit a record high over the weekend.
Although it fluctuated between $ 56 and $ 58,000 over several days, it does not appear to have made any of these upper levels strong enough to withstand the subsequent correction.
The price of BTC collapsed On February 21, falling from $ 58,400 to $ 55,800. Yesterday, On February 22, however, it fell from $ 55,800 to $ 47,600. Due to the decline, traders and investors started buying, causing an immediate recovery to $ 53,859, but as soon as the price returned to over $ 50,000, people started selling again. As a result, the price of BTC fell below $ 50,000 again, to $ 48,522 (at the time of writing).
BTC Tradingview chart
The sell-off began shortly after veteran trader Peter Brandt hinted in a recent Twitter tweet that BTC could rise in price to $ 200,000. However, he also said that it was likely that the price of the coin would undergo a deep correction before it reached that price. It is possible that this was a correction he was waiting to see, although it is just as likely that it is just the beginning.
Meanwhile, Elon Musk spoke again on Twitter about cryptocurrencies, this time in response to Changpeng Zhao. In a recent interview, Zhao said he was surprised that Musk pushed Dogeco so much, but in the end, he might like everything he wanted. However, he noted that it was interesting that Muski’s Tesla company bought $ 1.5 billion in BTC and not DOGE.
Musk replied that Tesla’s actions did not reflect his views. Owning Bitcoin is simply a less stupid form of liquidity than cash, as he claimed.
He also pointed out that he is an engineer, not an investor. Later, in a conversation with Peter Schiff, Musk also mentioned in another context that Bitcoin and Ethereum appear to be high in price, potentially suggesting that he is awaiting correction.
The price of Ethereum will collapse after reaching $ 2,000
Ethereum has been rising for a long time, moving slowly but steadily towards $ 2k. The coin has not had many situations where it rises sharply as Bitcoin tends to do. Instead, it was a long but steady growth and finally allowed ETH to reach 19. the $ 2,000 milestone at the end of February. The coin reached it just when the weekend started and it continued mostly on Saturdays.
According to CEX.IO, ETH’s current all-time high is $ 2,035. However, after reaching this height, the coin saw a strong correction. It dropped to $ 1,800, recovering to $ 1,920 after a short time. On Sunday, it ranged from $ 1,900 to $ 1,900, fluctuating between the two positions.
ETH Tradingview chart
But yesterday, 21. In February, the coin saw a huge crash, bringing it down to $ 1,550 before seeing a recovery to $ 1,800. As of this morning, the price of Ethereum was falling again, currently at $ 1,529 (at the time of writing).
At the same time as the price plummeted, Binance had suspended one of its publications, which prevented users from carrying out ETH and Ethereum-based tokens.
Needless to say, many people were quite angry with Binance, which reaffirmed that heavy network congestion caused users to be unable to withdraw money. Binance has had a little too many incidents, too often, and the stock market has made headlines accusing them of targeting Ethereum’s network in order to direct more users to its platform.
What’s next for Bitcoin and Ethereum?
It is safe to say that both Bitcoin and Ethereum have reached uncharted territory in the last few days, and it is understandable that investors and traders rushed to sell as soon as something signaled that a correction was imminent. However, this is probably only a rough obstacle, and experts expect much more price increases.