Bitcoin collapses after rallying to $123,000 - traders take profits
Bitcoin is back in its repertoire. Just the other day it was happily rewriting historical records, soaring above $123,000, but by the beginning of the week it had already corrected to $117,000. Crypto investors have two options to explain what happened: either it was profit taking or "because it's Bitcoin, baby."
What happened
In reality, as usual, it's a little more complicated than that. Against the background of legislative activity in the U.S. (Crypto Week in Congress, after all), as well as news about potential regulation of the digital asset market, traders decided that it's not a bad idea to sell high. Especially after such a meteoric rise. A classic of the genre: first "tu ze mun", then "can I get out?".
Ether, XRP, Solana, Dogecoin - all went downward. The picture is the same as with Bitcoin: plus 15% for a week, minus 4% for a day. Those who didn't have time will hold "up to 300,000" as usual.
Bitcoin corrected to $117,000 after a record peak above $123,000. Illustration: Bloomberg
According to analysts (not all of them, but the ones who are making some sense), this is still no reason to sound the alarm. The market has overheated, investors have exhaled, and now everything will pause until the next "Wow!". The support level is around $114,000, from where those who still believe that this time $1 million is not far away will probably start buying again.
In the meantime, one step up, two sideways. Just the way we like it.
Source: Bloomberg
