Why did the bitcoin price fall

On the trading day of January 21, we saw huge drops in Bitcoin and cryptocurrencies. Janet Yellen, who was expected to become the Treasury Secretary of the new Biden administration, created a selling pressure when she talked about the restriction of cryptocurrencies with terrorist financing.

 

 A news about double spending in Bitcoin made sales a big wave. Later this FUD-news was denied, but what happened. The fact that the sales did not stop despite the news being denied showed us that the sales pressure is not over technically. In other words, since March 2020, Bitcoin buyers have made so much profit that the failure to overcome the $ 42,000 resistance creates selling pressure especially on these old investors. Because in less than a year, there has been a serious increase from roughly $ 4,000 to $ 40,000. At that time, for example, who deposited $ 10,000 in Bitcoine had a profit of $ 65,000, even after the big drop today, from $ 30,000. 100 thousand deposits still have a profit of 650 thousand dollars, 1 million deposits still have a profit of 6.5 million dollars. There is so much money on the table that has been made in such a short time that these old investors are still selling, fearing that Bitcoin will fall too much.

 What we call technical analysis is actually a discipline that tries to measure such investor behavior. Sometime on January 21, the loss in Bitcoin reached the level of 15%. Many altcoins have, of course, seen even more declines. Bitcoin ended the day with a decline of around 13%. Thus, from the peak of $ 42,000 on January 7, Bitcoin fell to $ 31,000, losing 26% in 2 weeks.