The crypto market is in crisis – is this your golden opportunity?
Guys, the shock that happened in the last two days was very strong. Bitcoin crashed from over 95 thousand dollars two weeks ago and is now at 86,649 dollars, the lowest price in seven months! This is a drop of more than 5% in one day, and more than an 8% difference from the same day last year. The whole market is in a state of extreme fear, and the most popular digital currency is facing its worst month since the FTX collapse in 2022.
Today we will answer: Is this moment really an opportunity to buy, or is the decline still ongoing?
Why did Bitcoin drop like this?
Large funds sold more than $4 billion worth of Bitcoin and Ethereum in November! This is significant institutional outflow and money is leaving crypto quickly.
U.S. ETF funds recorded an outflow of about $903 million in one day.
The mood on Wall Street has shifted in favor of stocks instead of crypto, and large buying volumes have gone to traditional markets instead of digital currencies.
The Fed is not confident about lowering interest rates, and there are signs of small crypto companies failing or shutting down.
The Fear and Greed Index is at its lowest (extreme fear), which means everyone is anxious and selling quickly.
Technical analysis - where is the market heading?
The price is currently around $86,700 and sometimes drops to 84,000; the highest trade was close to 87,000.
The presence of a Death Cross on the Bitcoin chart (the 50-day average crossing below the 200-day average) is a negative signal, often preceding continuous declines.
The Relative Strength Index (RSI) is below 30 - a real exaggeration in selling, and it usually rebounds afterwards.
There is strong support around 84,000; if it breaks, we might see prices drop to 80,000 or less.
The first resistance is above 90,000, and if a strong rebound occurs, we might see a rally afterwards.
Is it really the time to buy now?
There are signals saying yes and signals saying wait a bit:
Positive signals that you might buy:
The RSI is exaggerated (27-30), and the market usually rebounds afterwards even with a small correction.
The support around 84-86,000 attracts buyers, and this is an area where many people accumulate.
The state of extreme fear in the market is often the beginning of correction opportunities for those who have patience.
Negative signals, be careful:
Institutions are still selling in large quantities and have significant liquidity to drop further.
The presence of a Death Cross is scary because the market usually drops further afterwards.
Liquidity is low, overall sentiment is negative, and selling continues.
The practical solution:
If you plan to enter, enter with small amounts divided over several days or weeks (what is called Dollar Cost Averaging). Set a stop loss around 80-82,000, and if the market breaks that support, wait for a new drop phase; it's better than resisting the market.
Year-end predictions
If there is a real rebound from the current support and this strong selling wave ends, Bitcoin might adjust and reach back to 95-100,000 before the end of the year.
But if the support breaks and selling continues while institutions keep exiting, we might see Bitcoin below 80,000 for at least a while.
**The most important tips for traders and investors right now
Don’t buy all at once; distribute your purchases gradually.
Monitor the price range between 84,000 to 87,000 very closely.
Set your stop loss at the break of 80,000, and have a backup scenario.
Follow market news daily and know what the Federal Reserve is thinking.
Stay completely away from leverage now because the market is unstable.
If your investment is long-term (a year or more), this major correction could be an opportunity to benefit, provided you manage your risks well.
**Summary
Bitcoin is currently in its worst monthly correction for almost a year and its price is dropping around 5% daily. The market is scary, and institutional selling is clear, but there are always moments in the crypto market when the world is scared that become the beginning of real opportunities for smart investors. Enter wisely, and wait for strong rebound signs before increasing your investment. The market can surprise you with anything - be prepared mentally and psychologically, and always manage your risks.
