Which Factor Has Affected Bitcoin's Recent Drop?

Which factor has affected Bitcoin's recent drop? What happened in the bitcoin market? Bitcoin (BTC), which currently eliminates most of the monthly candle, is trading further behind its price at the beginning of the month. It is stated that the US dollar, which has recently appreciated, may be the end of this cycle, affecting the bull run. Bitcoin (BTC), the largest of cryptocurrencies, has entered a downward trend for the first time since mid-2020, after a full recovery in the panic sale last March. It is said that the leading cryptocurrency traded around $ 50,000 is at risk of seeing lower levels. As momentum drops, analysts warn that the correction that Bitcoin will experience after such a steep rise could be worse than thought. At this point, it is stated that an effective decline will begin if a dangerous fractal in the DXY Dollar Currency Index moves to past cycles. An example of this is the occurrence of a bear market after Bitcoin reached its peak in 2017. The reason that triggered the cyclical markets at that time was the reversal of the US dollar in the medium term. As can be seen from this chart, Bitcoin is moving towards a dangerous point. The DXY Dollar Currency Index - a basket of top fiat currencies weighted against the USD - had recently recorded a similar boom. A bear market followed, and Bitcoin fell more than 80 percent from $ 20,000 to $ 3,000. The boom in just a few days caused Bitcoin to retreat from record levels by more than $ 10,000. It is stated that a complete drop from the high level of just under $ 62,000 can drop the price per BTC down to $ 12,000 where the breakout occurred, almost undoing the entire movement. While the DXY chart seems to indicate that the bull market is over, there is said to be another scenario in Elliott Wave Theory that could save the day. This theory focuses on the motives of the investors. Judging by the chart below, Bitcoin could be entering the fifth wave in terms of a larger motivation wave. The Elliott Wave Theory says that the trend starts when no one expected, moves fast, but stops before things go too far. In the second wave, investors moving in the opposite direction of the trend are still convinced that the bear market is in effect, and almost the entire move retreats before going higher. The third wave seems straightforward, according to the study's descriptions. Price appreciation is moving fast, driven by FOMO, which absorbs more and more participants. Picking the fourth wave is said to be a little harder because it can make investors feel like they're at the top of the cycle. If Bitcoin is preparing to launch the fourth wave, the fifth wave will accordingly shock. It is said that if this time is really different, one of the fourth wave will not return to its upward path. At this point, it is stated that anything less than $ 13,800 will not be in question. For those who can withstand these, it is thought that the fifth wave could push Bitcoin to the top.   Source: KriptoKoin