Bitcoin crash: Is it bears already?
24hrs BTC chart. Source:Coinmarketcap
If you’re big on altcoins, then your portfolio probably saw a double digit drop in the last 24hrs. Bitcoin dropped below $43,000 in a rather unexplained move. If Kazakhstan’s internet issue is to be held accountable, then it only goes on to explain why this space is described as ‘crazy’ by critics.
Bitcoin first, then others. The rest of the market followed bitcoin’s dip as the market shed over $200 billion from its total capitalization in the early hours of the day. Crypto twitter responded in its usual fashion as the greed index dropped to ‘extreme’ fear. You surely saw those tweets; “sell everything”! lol. Crypto twitter is certainly not my favourite place, but it surely makes the list. The shills dried up as the bears had a good day.
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The bitcoin dip comes at a time when majority of speculators were expecting a brief upward trend. A trend they believed would usher in the bear season. The bears probably caught then off guard. But, is it bears already? There’s hardly a confident answer here. The bear season has been called several times. For the bears, ‘every dip spells the end’. Regardless, these drops end with quick recovery and price going up once again.
This one looks a bit different anyways. Bitcoin hasn’t really been up and running recently. While many altcoins have performed relatively well for the past few weeks, bitcoin looks like a car on breaks. Constant slow movements and little price drops as it keeps struggling to break through resistances. The journey back to $50,000 has been rather gloomy.
Despite some altcoins showing positive signs, their rally has constantly been dampened by bitcoin’s low momentum. Unarguably, there’s currently a high sell pressure on bitcoin. On the positive side, it appears to be holding on just well at these prices and the consolidation has been going on well. A worst-case scenario would be dipping below $40,000…an event I consider ‘unlikely’, at least in short term.
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Is it bears already? Things are certainly not looking healthy, outwardly. We are currently leaning on a psychological support. Just like the moon boys would ask; ‘when news’? the next tangible news will go a long way to determining the direction of things but a proper bear season might still be far from us…if there will ever be one again.
Investors’ attitude is developing and even at extreme fears, investors have learnt to hold on to at least a tangible percentage of their portfolio and get back to their positions when recovery signs show. The probability of a full blown bear market is relatively low; nevertheless, periodic crashes are inevitable. But since old bitcoin wallets are coming to life again, you’ll certainly get a chance to lay your hands on some Satoshi-era bitcoin…lol.
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hello @joelagbo,
One of the things I believe is that panic is not always a good thing. when I hear a person afraid that the BTC market will lose a few thousand dollars, I ask them, do you have 1 BTC? usually people don't, so for me it is not logical to fear that prices will go down, on the contrary, we are all waiting for a downturn in the market to buy at a devalued price.
This is true to some extent. but the general fear comes from the fact that btc's movement affects every other assets in the market.
One thing that I am quite sure of is that it is normal that in bitcoin that whatever goes down will still tend to recover up though it might take a little longer this time for the market to fully recovered though
Thanks for taking time to read!
Thanks for sharing your point of view, I am of the opinion that Btc should go down a bit more in search of liquidity, then enter range zones and throwing long and unexpected wicks to liquidate the longs. Anyway a bit of manipulation, but I am certain to see Bitcoin above 70K again
Personally, I try not to use certainties when it comes to crypto. Your analysis sounds right, just like every other analyses but at the end of the day, this space proves unpredictable.
Hi @joelagbo
Finally I've found some time to catch up with previously bookmarked posts. This topic is quite right on time. Many people seem to be concerned about recent BTC price action.
You've made a good point about Kazakhstan’s internet issue. It surely had a great impact on recent sell-off.
I kind of disagree. Things didn't look healthy when Bitcoin reached $67k without having any resistance just few months ago. Hype we have witnessed around that time ... that was unhealthy.
Right now crypto market had a chance to shake out large part of so called "weak hands". Which I consider to be healthy BIG TIME! :)
ps. I like how you compared bitcoin to "a car on breaks". Right on spot! :D
ps.2. maybe you will find my post worth your time and attention. It's related to recent bitcoin price movement and my view on it: https://steemit.com/hive-175254/@crypto.piotr/reason-for-bitcoin-massive-sell-off-learn-my-personal-opinion-and-share-your-view-and-earn-10k-sp-upvote-on-your-comment\
Cheers, Piotr
I think we are actually on the same page. That's actually the central message of the whole article. Things are not looking good outwardly; which is a clear fact. However, if you take a look at the bigger picture, we are consolidating at a very good price and if we ever make a recovery, we will be going straight into another cycle of the bull run.
thanks for taking time to read!