Why BitCoin Is Falling ? What is The Nex suport For BTC and Ethereum
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The most popular cryptocurrency in the world, Bitcoin (BTC), recently reached an 11-month high of $30,000 and is now trading in a narrow range near similar levels. At the time of writing, one Bitcoin is valued approximately $27,500, down from roughly $69,000 in November 2021. Although Bitcoin has experienced several ups and downs and has begun to trend upward, it is still a long way from its prior all-time high values. So what should you do if you have Bitcoin investments right now? You should either run a mile or have very strong hopes that Bitcoin will quickly return to its previous levels.
We explain what investors must do in Bitcoin, which is still only trading at 50%, in this in-depth read. less than its highest peak.
What Is Happening to Bitcoin?
The year 2023 appears to be rather turbulent for Bitcoin (BTC), the most popular cryptocurrency. Bitcoin reported a drop of nearly 2% in a week after reaching its eleven-month peak last month at $30,000 and now trading at $27,000 levels.
Following the demise of FTX and a U.S. banking crisis, Bitcoin has managed to survive in the face of intense market pressure and general unpredictability.
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Post the last year’s deadly November crash, when Bitcoin was hovering around in the range of $16,000-$18,000 levels, it has now rallied nearly 80%; but is still on the flip side. BTC is still almost trading 50% less in value since it reached its all-time high at $69,000 in November 2021.
Following is a breakdown of how BTC's price has fallen since peaking in the previous calendar year:
As we can see, Bitcoin reached the crucial $30,000 level in April of last year and then made a very strong resistance at $29,000. This upward momentum, however, may not last for very long as a result of several forces that continue to drive and resist the price movement.
Congestion in the Bitcoin network, which forced one of the biggest exchanges in the world, Binance, to pause Bitcoin-related withdrawals twice in a row, is one of the most recent factors influencing the price of Bitcoin.
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Why Did Crypto Exchange Binance Pause Bitcoin Withdrawals?As a result of major cryptocurrency exchange Binance pausing bitcoin withdrawals twice in one day on May 7, 2023, amid high volumes, the price of bitcoin fell to $27,000. In a reaction to this update, Bitcoin is almost down by 2% at $27,600, at the time of writing to its one week low. Earlier in March also, Binance, suspended deposits and withdrawals of Bitcoin citing some tech issues.
Binance said in a tweet that the exchange had to take this decision as the Bitcoin network was facing major congestion issues impacting the Bitcoin’s network as a whole. But an hour later, Binance started accepting Bitcoin again.
Binance had to take this step as there was an overhaul of pending transactions related to Bitcoin and the exchange was not able to offer the miners a high reward fee to process the trades on the blockchain. In one of their tweets, Binance also mentioned that their fixed fee did not account for the recent increase in Bitcoin network gas fees. As a result, they are substituting the pending Bitcoin withdrawal transactions with a larger fee in order to attract the attention of mining pools.
What Propelled Congestion in Bitcoin’s Network?Due to its extremely high transaction fees, Bitcoin encountered this significant network congestion issue. It is to be noted that “transaction fees” refer to payment made to the miners whose computing power processes the transactions on the blockchain network.
As per the data given below, we can easily see how the Bitcoin Average Transaction Fee (BATF) has risen in a one-week time frame. At the moment, BATF is trading at $30.91, up from $19.21 and from $1.811 last year.
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