Altcoins Plunge by Over 10% as Bitcoin (BTC) Price Revisits $66,000: Here’s What to Expect

Satoshi’s street is undergoing a bloodbath as the interim recovery period appears to have faded off. The BTC price is heading close to the lower support around $65,000 without any interference from the bulls and as a result, the selling volume has mounted in the crypto space. With this, the altcoins have plunged, while the memecoins and AI tokens have suffered massive plunges. The ongoing pullback does not appear to halt for some more time, due to which the altcoins may remain stuck within a descending consolidation. 

What’s next? Will the markets fall back into the bearish trap ahead of the Bitcoin halving? Will the halving fail to have a positive impact on the markets?

Historically, contemporary traders who have just begun their trading journey do fall into the FUD trap whenever the markets undergo a pullback. This could be one of the reasons for the ongoing descending trend, but eventually, the markets tend to undergo a massive rebound. The data from Santiment indicates that the trader’s sentiments revolve around buy, buying, bought, and bullish instead of sell, selling, sold, or bearish. 

The above chart indicates the soaring bullish sentiment of the market participants, as bearish queries remain consolidated below the bullish ones. This indicates that the crowd continues to remain bullish, staying quiet and strong and showing confidence toward the prospects of a quick rebound. The best buying opportunities occur when the crowd consensus is showing a bit of fear toward a further drop. This usually results in small wallets dropping their bags for whales and sharks to scoop them up. 

Currently, the Bitcoin price has dropped below $65,500 after failing to hold the levels around $67,800, which held a liquidity cluster. A drop below these levels appears to have triggered huge liquidity, which has slashed the price below the support. Therefore, now that the crowd is showing a bit of fear toward a further drop, it can be the best buying opportunity.