Bitcoin Tumbles as Selling Pressure Increases

Bitcoin created a rush among the digital investors after registering a new ATH for the second time in the same year. During the last week, the price of the flagship crypto was able to reach $69K. However, since then, many investors have opted to cash out, which has resulted in a sharp price drop. During this free fall period, Bitcoin prices underwent a correction that took the top coin back to $55K.

Despite the sudden crash, many technical market experts take the latest retraction as a good sign. On the other hand, several crypto derivative exchange platforms recently arranged an event to absorb the shock of massive selling pressure. This event is termed a shake-out, and it assisted in resetting the funding rates back to stable levels.

October proved to be a great week for the cryptocurrency market, and several new developments paved the way to get it to the $3 trillion mark. However, the middle of November does not seem to be pretty kind towards the flagship cryptocurrency. Crypto analytics service providers like Cointelegraph MarketsPro and TradingView both reported BTC/USD trading pair crashing as low as $55K.

The latest ATH acquisition for the pair is a result of the fastest rate of inflation hitting the US markets in 30 years. Derivatives markets also played a significant role in creating the price uncertainty that resulted in a sudden bullish climb. As soon as, Bitcoin price reached $69K point, the market sentiment was overtaken by fear. At the same time, the experienced investors remained calm and took this opportunity to troll the new blood in the market.

New Update for Bitcoin Network

William Clemente is an expert crypto market analyst and trader. He recently took to Twitter to share his thoughts about the recent price juggle showcased by Bitcoin price action. Clemente pointed out that the Taproot upgrade for Bitcoin is only days away from going live on the network. He further added that this new upgrade is set to make many protocol changes in the blockchain. According to Clemente, this is the biggest change for the Bitcoin network since the SegWit update in 2017.

He opines that such a major change has inspired fear among many investors and caused them to cash out. Meanwhile, another analyst Dylan LaClair from Glassnode, trolled the short-term investors and claimed that there is no free lunch in the cryptocurrency market and the weak traders are undergoing a process of shakeout that will leave only the refined ones behind for the longer run.