Cryptocurrency Correction Made Bitcoin Fall Below $56,000

In the early hours of Friday’s Asian trading day, Bitcoin prices plummeted to a monthly low of $55,650, according to Tradingview, which uses Binance pricing. According to CoinGecko, the dip represents a daily loss of 6.7 percent.

Bitcoin fall below $56,000 Owing to Cryptocurrency Correction

The asset was trading at $56,220 at the time of writing, but it has been slowly declining since the start of this week. After falling below the 50-day moving average, Bitcoin is presently clinging to the bottom of the trading range. The asset may fall to the $53K support level if it drops below it.

Most industry watchers and Bitcoin technical experts did not seem alarmed by the recent decline in the value of the digital currency, instead advising investors to buy the dip.

Trader and CNBC broadcaster Ran Neuner attributed the recent drop below $56K in bitcoin prices to leveraged holdings. Exchange balances have been monitored by fellow analyst Dylan LeClair, who reports that everything seems to be in order. Even though Bitcoin is presently down 18.5 percent from its recent high, no one seems very worried.

Other Crypto Markets

There was a 6 percent drop in the overall market capitalization in the last 24 hours, to $2.6 trillion. In a typical fashion, the rest of the cryptocurrencies, including Ethereum, are losing ground. Solana (SOL) is down 8 percent, Ripple (XRP) is down 7 percent, and Shiba Inu (SHIB) is down 10.5 percent today, all of which are notable laggards. Sandbox (SAND) and Metaverse-Based Decentraland (MANA) are two of the few top 50 currencies that are breaking the trend.