Bitcoin and Ethereum See Major Weekend Corrections After Hitting New ATHs
Bitcoin (BTC) and Ethereum (ETH) have seen massive price increase over the past week, only for their prices to reach the peak over the weekend, and then see strong corrections as the final week of February started. Both coins have seen massive price drops over the last two days, but this doesn’t necessarily mean that the rally has ended.
Bitcoin price crashes
Bitcoin has been making headlines about new highs and new records for weeks, and even months, at this point. The coin’s current all-time high, reached on February 21st, puts it at $58,400. Over the past week, the coin surged from $50k to reach this record over the weekend.
While it did go up and down between $56k and $58k for several days, it appears that it did not make any of these upper levels into a strong enough support to withstand the correction that came after.
The price crashed on February 21st, dropping from $58,400 to $55,800, according to data from CEX.IO. However, yesterday, February 22nd, it dropped from $55,800 to $47,600. The drop caused traders and investors to start buying, causing an immediate recovery to $53,859, but as soon as the price came back above $50k, people started selling again. Asa result, BTC price dropped below $50k once more, currently sitting at $49,920.
The oversell came soon after veteran trader, Peter Brandt, hinted that BTC could peak at $200k in a recent tweet. However, he also said that it is likely that the coin’s price will go through a deep correction before hitting this price. It is possible that this was the correction he was expecting to see, although it is just as likely that this is only a beginning.
Meanwhile, Elon Musk once again spoke about cryptocurrencies on Twitter, this time in response to Changpeng Zhao. In a recent interview, Zhao noted that he is surprised that Musk is pushing Dogecoin so much, but that he is, ultimately, free to like whatever he wants. However, he did note that it was interesting that Musk’s company, Tesla, bought $1.5 billion of BTC and not DOGE.
To that, Musk replied that Tesla’s action is not reflective of his opinion. Having Bitcoin is a simply less dumb form of liquidity than cash, as he stated.
He did point out that he is an engineer, and not an investor. Later on, in conversation with Peter Schiff, Musk also mentioned in a different context that Bitcoin and Ethereum ‘do seem high,’ potentially hinting that he expects a correction.
Ethereum price crashes after hitting $2k
Ethereum has been going up for a long time now, slowly but surely heading towards the $2k mark. The coin did not have many instances where it suddenly skyrocket like what Bitcoin tends to do. Instead, it was a long but steady growth, and it finally allowed ETH to hit the $2,000 milestone late on February 19th. The coin reached this milestone just as the weekend started, and it even kept going for the most part on Saturday.
According to CEX.IO data, ETH’s current all-time high is at $2,035. After reaching this high, however, the coin saw a strong correction. It dropped to $1800, recovering to $1,920 after a brief period. On Sunday, it remained between $1900 and $1970, fluctuating between these two positions.
However, yesterday, February 21st, the coin saw a massive crash that took it down to $1550 before seeing a recovery to $1,800. As of today, Ethereum price is dropping again, currently once again sitting at $1593, and currently still heading down.
At the same time as the price was crashing, Binance had one of its withdrawal suspensions that prevented users from withdrawing ETH and Ethereum-based tokens.
Needless to say, a lot of people were quite infuriated with the exchange, which once again claimed that the high network congestion is responsible for the inability of users to withdraw money. Binance has had a bit too many incidents a bit too often, and the exchange has also made headlines in which it was blamed for purposefully choking Ethereum’s network to drove more users to its platform.
What is next for Bitcoin and Ethereum?
It is safe to say that both, Bitcoin and Ethereum have reached uncharted territories over the past few days, and it is understandable that investors and traders were in a rush to sell as soon as something signaled a correction was coming. However, this is likely only a bump on the road, and a lot more of price growth is expected by the experts.
Konstantin Anissimov, Executive Director at CEX.IO