It’s said that if you like something at a higher price, then you should love it at a lower rate. But things don’t seem to work in that particular order for Bitcoin. Bitcoin’s price drop has lead to unimaginable fear in the crypto markets. The index has dropped to 14, and there is no greed to be seen. But this correction seems to be just a normal correction in the charts that has happened in every bull run. In fact, a similar correction was seen in 2013 charts that was followed by even more gains.
The China FUDs are another reason to believe this. It’s because, in every bull run, they were the first to ban Bitcoin time and again. But at present, the FUDs seem to have ended, and the market is ready to make a strong upside move. For all bulls, the good news is that in the 2013 bull run, the prices made a high of $255 before tumbling and made another high of $1,150 in 8 months.
Why was the crash important?
The crash that just happened has wiped of leverages, many weak hands and has concentrated Bitcoin in stronger investors. In any market, for someone to earn money, someone has to lose it. And this crash has liquidated so many positions and has resulted in so many panic sellers that these are the ones who have lost money for the HODLERS. Reports suggest that most sales made after the crash were newly bought Bitcoin and were sold at a loss. It also showed that coins were flowing into stronger hands (hopefully just before another phase of the bull run).
We do have bears who don’t believe in Bitcoin and are happy to make 10% returns on average manually. Yes, Yes, I am talking about Peter Schiff, who has given his own views on the topic even though no one asked for it. Okay! What I think is if Bitcoin manages to move up from here, it will instill even more faith in the currency, and we could make new highs again.
Next price target!
Analysts have been suggesting that the market dip, the china ban FUDs are all pointing towards one thing, it’s 2013 again. Maybe we could see the pattern repeat again, and the prices move up 500% from here on. This is not a 100% guarantee, but yes very likely to happen. This means we could see the prices peak in Jan or Feb 2022. And that could be the stop for this year’s bull run. Many are even giving our price targets, saying that $100k is on the cards by August 2021. Maybe Bitcoin’s price drop is just the silence we hear before the thunder.
When the market is greedy, you should be fearful, and when the market is fearful, you should be greedy. Check out the Bitcoin fear index, and you will know what to do. What are your thoughts on this price drop? Do you think it’s a mid-way cycle, or the bull-run is over? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.