With Bitcoin falling below $90,000 for the first time since April, the markets seem to be in a state of tension and anxiety.
But the real question is: Are we really in the bloody street battles that major investors have been talking about? Or is there a hidden opportunity amid this decline?
đ´Bitcoin's Drop: Is it a Natural Beginning or the Start of a New Phase?
Bitcoin has seen a 28% drop over the past six weeks, triggering a wave of anxiety among traders and investors. However, this decline isn't just about numbers on a chart; it reflects a tense market sentiment.
1ď¸âŁSocial media data indicates a significant increase in discussions about Bitcoin compared to any other cryptocurrency. This intense focus on Bitcoin reflects its impact on the overall market, as it serves as a key indicator of the state of the cryptocurrency market.
2ď¸âŁWhale Activity: Is it the Cause?
Over the past week, large wallets (10-10,000 BTC) sold 77,120 Bitcoin, representing 0.44% of the total supply. Such large moves by whales are always a strong indicator of a market trend shift.
On the other hand, small wallets (0.01 BTC or less) are still holding onto their coins, reflecting a strong belief among retail investors that the market may recover soon.
3ď¸âŁ Price Expectations: From Optimism to Pessimism
Last October, when Bitcoin reached its peak of $126,000, expectations pointed to prices exceeding $130,000. Now, with the current decline, expectations have become more realistic, with traders discussing levels between $40,000 and $80,000.
This shift in expectations reflects a change in overall market sentiment, which is normal during bear market cycles.
Is it time to buy at the bottom?
Interestingly, talk of "buying the bottom" has reached its highest level since last March. However, historically, when there is significant interest in buying the bottom, the market may need more time to reach a true bottom.
Markets need more pain and fear before they begin to recover sustainably. So, if you're thinking of buying now, be prepared to endure more volatility.
Are we in the "blood on the streets" phase?
The markets may not have reached the true "blood on the streets" phase yet, but current indicators suggest we are approaching it. If you are an investor or trader, these are times that demand careful analysis, patience, and discipline.
#Tip : Don't let emotions control your decisions. Use this period to learn more about the market, analyze data, and develop long-term strategies.
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