Why is Bitcoin price down today? Here are the main reasons

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The crypto market suffered an expected correction after a three-week rally, with the total market capitalization down 3% in the past 24 hours. The second-largest digital asset, Ethereum (ETH), has fallen around 5% over the past day, trading at around $1,554 on Wednesday.

Additionally, over $227 million has been liquidated in the crypto market in the last 24 hours. However, on-chain data suggests there may be more pain in the near-term future.

According to on-chain analytics firm Glassnode, short-term Bitcoin holders and miners are selling their positions heavily during the relief rally. Despite this, long-term holders are experiencing unprecedented levels of Bitcoin accumulation, leading to a fierce tussle between bulls and bears.

Our latest #Bitcoin video report is live, covering

– Underlying fundamentals of the $23,000 rally – Short-term holders and miners taking liquidity – Long-term holders pushing into new ATHs – Key price and cost basis patterns to watch

Watch our latest reporthttps://t.co/C1ONB3koA3

— glassnode (@glassnode) January 24, 2023

According to reports, the on-chain data shows a significant resemblance between the 2018/2019 bear market and the 2022 bear market. Nevertheless, the macroeconomic factors have changed considerably and the crypto market is no longer dependent on speculative aspects.

The recent Bitcoin price surge has resulted in a first break above all three cost bases for the first time since the 2018/19 bear market and the March 2020 Covid crisis. An extended duration above these levels key psychological issues would be considered constructive, Glassnode said.

GlassnodeWhat is the return point for the crypto markets?

Following the recent crypto rally, many coins have returned to pre-FTX trading levels. However, the impact of the collapse of FTX and Alameda is still being felt, as evidenced by Genesis Trading, a subsidiary of Digital Currency Group (DCG), which recently succumbed to losses.

Popular market economist Peter Schiff predicts that Bitcoin price will soon fall below previous lows. Schiff believes the crypto market, including Bitcoin, is heading for a prolonged period of decline.

Do you know what’s worse than advising people to sell #Bitcoin and then seeing it go up 30% next week? Owning bitcoin, watching it rally 30% in a week, not selling any, then watching the whole rally reverse and bitcoin crashing below the level it originally rallied from.

— Peter Schiff (@PeterSchiff) January 24, 2023

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