🔸 Reason for the drop
The drop from 115,300$ to 112,580$ (by 2.7%) was mainly due to the liquidation of leveraged positions, not due to a lack of confidence in the market or a break in the upward trend.
🔸 Factors contributing to the drop
- Fear of quantum computing (Quantum Computing FUD). This was a comment from the founder of Solana regarding Bitcoin's weakness against quantum computing. This created some concern in the market.
- Profit-taking pressure. It's very natural to see selling pressure (for profit-taking) after every upward movement, especially since ETF funds entered with about 886M$ last week.
🔸 Market sentiment
- Fear and greed index = 44 (neutral):
This number means that the market is not in a state of extreme fear. This drop is not a sell-off due to fear, but rather (profit-taking).
- Exchange flows:
Large transfers to centralized exchanges (43.8M$ and 23.5M$ in the last 24 hours). However, these transfers indicate (institutional reallocation), and this is a very natural movement.
- ETF fund flows:
These flows are still strong. Because last week there was a net inflow of +886M$ (98% of which is from the giant and devil BlackRock).
In general, the net positive flows in recent days have entered the ETF funds with new amounts of 222.6 million dollars and 163 million dollars.
Also, the Metaplanet deal of 632M$ reflects what? Exactly! It reflects (corporate confidence).
🔥 This indicates that institutional demand is still strong and ongoing..
🤦 Therefore, Abbas in a hurry! Calm down and let me answer your question and my question and humanity's recurring question:
🟢 Is now a good time to buy?
For me (I am optimistic), yes. This is a good time to accumulate. But don't accumulate worthless coins that have no good or luck!
