Bitcoin dropped 17% last Monday from a record $ 58.330 to $ 45. The massive drop in price was attributed to selling pressure as the cryptocurrency approached 60K.
The price reversal has left investors with mixed feelings, with hardcore HODLers fighting for buy Bitcoins falling, but leaving other less passionate investors confused and ready to retire indefinitely. Famous trader Dave Portnoy then promised never to buy bitcoin again.
The price correction is a very welcome relief
Although analysts argue that Bitcoin's correction was certain, it's unclear whether bitcoin will continue to rise again or how long the decline will last. However, Bitcoin is estimated to meet its next key resistance at $ 75 on its way to $ 100.000.
According to Raoul Pal, a bitcoin advocate and global macro investor, Bitcoin's rapid rise was set to erupt in a timely correction that will allow people to acquire more falling BTCs.
Pal said he feels tremendous relief when the Bitcoin clearances arrive. Furthermore, he says the decline is consistent with March, a historically weak month that could deepen or prolong the collapse in bitcoin prices.
Bitcoin is showing an upward trend
Raoul also said that bitcoin's upward trend which highlights the most recent data points, is different from Bitcoin's exponential moving average (EXPMA) which measures the direction of the trend over a long period of time.
Bitcoin can become speculative and exceed the limit due to its money network effect, but it often corrects itself to 300 EXPMA weekly before rising again.
“Bitcoin is currently nearly 600% above its 300-week EXPMA. Normally it reaches 1000% or more, before correcting (and this is a long way from here considering that EXPMA is also on the rise and will continue to do so) ”.
Pantera Capital CEO Dan Morehead believes that bitcoin will be the highest-valued entity in the United States in 2022. “Bitcoin itself is already larger than all but four of the American public companies. At current prices, if bitcoin continues with its 213-year CAGR of 10%, it will overtake all public companies next year ”.
Meanwhile, on-chain crypto metrics data provider Messari advises investors to intentionally "step on" the cryptocurrency market:
“The crypto market is risky. Don't invest more than you can afford. Ride the blue chips if you decide you want to exhibit in the industry. Plan taxes and commissions, minimizing the number of positions you have open and think about selling taxes and memetics in a hyper-growing market ”.
Are you positive? Think bitcoin can rise again? Let us know in the comments below.