Bitcoin has rolled back to $60,000, and this is the first time in all of November, which provoked a bearish retracement for the rest of the altcoins. Last week, bitcoin was trading at its all-time high at the turn of $69,000.
However, today bitcoin has already tested the $59,000 level, losing almost $10,000 in total in a week. Ethereum also fell by almost 7%.
According to coingecko's analytical data, digital gold lost almost 7% in capitalization, and the capitalization itself fell from 3 to 2.8 trillion dollars.
The chief executive officer of Alpha Impact, Hayden Hughes, said that Bitcoin will now be in consolidation mode for some time.
There are rumors that China is going to impose new restrictions on large bitcoin mining, including for state-owned companies. China has been putting sticks in the wheels of bitcoin all year, banned crypto exchanges from working and blocked the air to miners.
He harshly suppressed the crypto industry, due to the fact that China wants to create its own digital yuan, as well as because of the environmental consequences of bitcoin mining. Bitcoin also falls into the new tax reporting requirements for digital currencies.
US President Joe Biden signed the bill for $550 billion. If we follow the fundamental analysis, then bitcoin should have rolled back and adjusted, since its growth in November was too impulsive and fast, and now we can observe a healthy pullback after the bull run.
It is very unusual to see the accelerated and intensive growth of the cryptocurrency without a rollback and a healthy correction. After such a correction, bitcoin will be traded in a narrow horizontal channel and bulls will accumulate strength for a new breakthrough and accelerated growth of the cryptocurrency.
Throughout this year, Bitcoin has been growing at an accelerated pace, in total, digital gold has grown more than twice, and ethereum almost 6 times. After such intensive growth, a healthy correction is required, which does not carry any special risks for cryptocurrencies.