Bitcoin (BTC) Plunged to $20K – Time to Execute Shorts?
Bitcoin suffered another massive blow following disappointing inflation updates on September 13. The brutal CPI (Consumer Price Index) news finally had Bitcoin plunging by more than 10% on the charts. While publishing this post, the leading crypto changed hands at $20,049 after losing crucial support over the last day.
The latest tweet from Santiment revealed that Bitcoin crashed as the S&P 500 noted its highest fall in two years. That saw Santiment concluding that the two sectors’ correlation remains elevated, and the crypto market generally flourishes amid zero equity dependence.
Also, the MVRV Ratio (Market Value Realized Value) indicated the growing FUD within the financial space. Glassnode’s update shows the 1d MA MVRV ratio plunged beneath one. While publishing this post, the metric hovered at 0.997.
It will likely dip more as conditions will keep worsening before upticks surface. The latest slide means near-term investors are exhibiting losses in their BTC balances.
What of This?
Nevertheless, Bitcoin depicted massive upside signals before the latest slump. That’s visible in the increasing Bitcoin holdings by whale and shark wallets since the bear markets emerged.
In this context, Santiment revealed that BTC addresses with more than 10 Bitcoins surged dramatically since mid-Feb. This metric has gained 3.6% since February, exploring its 19-month highs.
Indeed, the ongoing slump will dent BTC’s latest growth. Moreover, the leading crypto failed to overcome $22.5K by September 13. That triggered the crash that pushed Bitcoin towards the 20,000 support again.
Moreover, BTC’s loss vs. profit ratio hit its highest market since March 2022 by September 13. The inflation-driven turmoil will continue to deteriorate the mood within the asset in the near term. Meanwhile, it is about time Bitcoin maintains its current zones while contemplating the next move.
Bitcoin’s latest fall triggered a bloodbath in the overall crypto market. The global crypto market value could not sustain above $1 trillion, with the metric hovering at $985.42 billion during this writing. Also, the altcoin market suffered. Ethereum had to pause its massive upticks ahead of the Merge to trade at $1,602.31.
Stay tuned for the latest developments within the crypto space.