Data provided by analytics vendor Santiment shows that the current plunge of Bitcoin is in fact the market shaking off “weak hands”
As the major digital currency fell below $34,000, trader sentiment also fell to a major low.
However, Santiment believes this could signify a big bounce in the future.
Paper hands leave the market
Santiment’s team tweeted that trader sentiment fell to its lowest level in six weeks after the price of Bitcoin fell to the $39,900 level and even lower now.
The sort of capitulation signs that are currently visible on the crypto market are the weak hands dropping their BTC, which is needed for a “truly notable bounce” of the king crypto Bitcoin, the tweet says.
As of press time, Bitcoin is priced at $33,375, showing a drop of more than 7% over the weekend.
Also over the weekend, CryptoQuant shared that last week short-term holders moved a total of 11,760 Bitcoins to various crypto exchanges to get rid of them. Chinese crypto journalist Colin Wu commented that this BTC had been held by those traders for less than three months before that selloff.
Bitcoin could fall to $10,000: Peter Schiff
Peter Schiff, CEO of Euro Pacific Capital, a prominent BTC hater and gold bug, believes that if Bitcoin falls well below $30,000, a crash to $10,000 and below is very likely.
He already voiced this prediction in January, when the leading digital currency was also sitting at the $35,000 level.
Last week, Schiff wrote that a crypto selloff could begin after the historic rate hike initiated by the Federal Reserve.
He stated that many layoffs would follow and people would have to start selling their crypto to pay the bills that are rising quickly now.
