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November 30, 2020
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Bitcoin

Two reasons to explain Bitcoin’s 5% drop

After weeks of bullishness, Bitcoin declined earlier today

On October 28, the crypto king Bitcoin fell to an intraday low of $ 13,157 at 12:40 pm. UTC on Bitstamp cryptocurrency exchange. Bitcoin fell more than five percent from its daily high of $ 13,864, which came close to equaling the cryptocurrency’s peak in 2019.

Image by tradingview.com

The final boss

A pullback was widely expected in the cryptocurrency community, as the $ 14,000 level is perceived as “the final boss” of bulls. According reported by U.Today, Real Vision Group CEO Raoul Pal recently mentioned that it was the only resistance remaining before Bitcoin could try to break its $ 20,000 historical record.

Even if it weren’t for the $ 14,000 stronghold, the recent Bitcoin rally was evidently overheated and needed a correction.

Panic takes over global markets

Despite the bullish sentiment, Bitcoin has failed to stay above the fray in traditional markets. Spot gold fell more than 1.5 percent, with the US dollar index (DXY) continuing to rise for the third consecutive day. The pan-European STOXX 600 index fell more than three percent, with France facing a four-week quarantine.

US stocks are also solidly in the red, with the Dow falling more than two percent (567 points) after the opening bell.

Source: U.Today

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