Hello my fellow crypto enthusiasts! This week looks really scary for some of us. Most of us don’t like seeing our favorite coins/tokens destroyed by market going down. Others see this as a great opportunity to grab some more crypto. Let’s investigate if the recent deep was a bullish or a bearish sign.
Source
When we look at Bitcoin market, we usually use two data sources. The first is an overall environment – news, events, mining updates and etc. This time there were no significant events that can trigger the market to go down. The second data source is technical analysis and market history. Not to go into details, everyone was waiting for Bitcoin to go down. You can find many opinions all over the internet based on multiple indicators, but the overall tone is the same – Bitcoin can’t always go up without a single drop. What Bitcoin market history teaches us here? Let’s look at the previous bull run 2016 – 2017 on the chart below:
Chart taken from
twitter post by
@Bloqport
As you see, during the bull run of 2016-2017 every deep by 30% was followed by a growth of 150% at average. People have to take some profits along the way. When the market reaches some significant points, many investors chose to sell some amount of Bitcoin. This is healthy for the market. The local deep provides a buying opportunity that pushes market up to a new all-time high. If you believe we a still on a bullish market, than this a major bullish sign!
Another question you should ask yourself is who is selling: whales or hamsters? On crypto market, we can judge this by looking at addresses on blockchain with large and small amounts of coins. There are many services tacking this, for example glassnode. This Monday we see new whales (with more than 1k BTC) were born i.e. whales were buying the deep:
Source
At the same time the number of wallets with less than 0.01 BTC dropped by 10,000. If you ask me, an actual crypto hamster, this was a real bloody Monday for my kind! So many of us were shaved! Yet soon we will see Bitcoin up again and many more hamsters will come to replace our brothers with weak hands. Legio nomen mihi est.
Are you bullish on crypto market right now or do you feel correction coming? Let me know in the comments below!
Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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