#CPIWatch Possible causes of the correction of cryptocurrencies this Tuesday.
$BTC ✨💥✨💥✨💥
#BTCWhaleTracker Since last Wednesday, the crypto market entered a strong bullish trend that caused historical highs in the price of Bitcoin. However, during the early hours of this Tuesday, a sharp correction occurred among cryptocurrencies. In this work, we review some possible causes of this setback.
It is noteworthy that the price of BTC experiences a decline of 4.04% in 24 hours, according to CoinMarketCap. Meanwhile, Ethereum and Solana also suffer significant drops, the former lost support of $3,000 again and the latter fell below $160 per coin. It is worth mentioning that this setback was expected, considering that the increases were considerable.
Generally, strong price increases cause heavyweight investors to reach their anticipated profit limits. When this happens, these large portfolios liquidate their coins, which provokes a similar reaction from other whales and a multitude of retail investors. The scenario causes the price of the coin to collapse depending on the magnitude of the liquidations.
This is precisely what seems to be happening right now with the correction in the cryptocurrency market. Despite this, the bullish potential, both of Bitcoin and the rest of the alternative coins, remains strong. Corrections tend to lead to the entry of new players, which causes prices to quickly experience a bullish rebound.