Over a 50% ShakeOut
Don’t panic. This is normal. Even though it has been hailed as the best performing asset ever, Bitcoin’s infamously known for its wild volatility. As more and more money has poured into the cryptocurrency market and Bitcoin, from new retail investors and also large institutional deep pockets; the volatility is crazier than ever.
Market Correction or Huge Dump?
Call it what you will, there is no denying that there is a mixture of panic and excitement in the air: for those more experienced investors who are not deterred by the sea of red, who have weathered many a Bitcoin storm and have a bag of cash set aside, exactly for these ‘rainy days’, can only smell opportunity.
Is it time to buy?
Was this huge ‘correction’ inevitable? Bitcoin had been experiencing an impressive state of steady growth, however, the usual 20% and 30% dips we are used to seeing, were getting bought up faster than ever before, causing the price to rise too quickly for it to be sustained. Those that are unshaken by this last correction hope that Bitcoin will now continue to the upside, but at a more slow-and-steady healthy pace.
Reasons to stay bullish
There are some key levels of support and resistance around the low $30,000 range that Bitcoin needs to either break or sustain before we can know if this is the start of the bear market or just the bull market being prolonged. If so, we might see a second rally to the upside. Either way, the market will likely be very choppy for the next few weeks or even months.
When in doubt, zoom out
While it now seems extremely unlikely that Bitcoin will hit a target of $300,000 anytime soon, we do have some fundamentally good news still to come later this year. Parachains such as Polkadot and Kusama are coming, we have Ethereum’s EIP 1559 and Smart Contracts being announced for Cardano. If Bitcoin can keep its head up, it might just carry the Bullrun into 2022.
Youtuber Sheldon Evans breaks it down.
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