Altcoins Bleed Heavily as Bitcoin Sheds Huge Gains-Is This the Good Time to Buy?
Bitcoin once again slipped by more than 2% as the US state’s plan to regulate the crypto space made huge rounds
The altcoins also plunged miserably and incurred hefty losses as the market cap slashed below $1 trillion
The fresh rounds of negativity have filled the crypto space as most cryptos have slashed below their respective support zones. The Bitcoin price, which had been holding around $22,300 for a while now, slashed below $22,000 as the fresh wave of regulations knocked off. The prevailing bearish trend is expected to continue as a major update from the US emerges as the most bearish factor for today.
The US President, Joe Biden, proposed a budget that could include provisions to fill in the gaps for tax loss harvesting on crypto transactions. The main aim of the provision is to reduce the amount of trading by crypto investors. Presently, investors can sell at a loss and claim it on their taxes. Further, they buy the same tokens with the claimed amount, which is believed to have been repeated all these days.
With this, the crypto space plummeted significantly, facing acute losses since the early trading hours. Besides, it would be a good opportunity to accumulate some, as the data from Santiment suggests, the markets are flashing a ‘buy’ signal.
The altcoins have heavily bled this week, which has caused many signals for their underbought levels. Prices are believed to remain under bearish influence for a long time ahead, as they are likely to rise while the possibilities of a continued plunge are fewer.
So what’s next? How long will the bearish trend prevail?
The upcoming trend may be closely related to the Bitcoin price trend ahead. The price of BTC is believed to test the lower support close to $21,000 in the coming days. If the bulls are able to maintain an HTF close above these levels, then a lower low may be expected for a while, followed by a bounce. However, the bearish trend may continue until the bulls strengthen.