Think Before Buying/Selling Bitcoin!
Bitcoin price yet again plunged close to $30K, speculating the growing momentum of a bear market. Yet the BTC price recovered above $36K at the press time showcasing an extreme volatility due to the strife between the bulls and the bears.
However, as the bulls outpowered the bear market since the early trading hours and slowly the crypto space turned into green. And hence it appeared that retail traders jumped in to buy bitcoin at the discounted price. A popular analyst believes that this is not the correct time either to buy or sell bitcoin.
As per the analys, Alistair Milne, currently, certain events happening may impact the crypto space. Like, the banks adding up more fiat to their balanced sheet, FUD, reduced volume, etc has impacted the volatility. And hence it might in turn impact on the buying and selling of bitcoin.
Why Did Bitcoin Price Plunged Drastically?
The BTC price dipped yet again that created more FUD among the traders in the past couple of days. This FUD may have led to mounting selling pressure as more and more traders liquified their positions. However, according to a popular analyst, Lark Davis, the dip had been a feast for the whales.
According to the analyst, the current crash is due to the panic selling of the retail traders, and probably the ones who are new in the space. Adding the fuel to the fire, many FUD news like China Ban or a negative mention by a big influencer, etc may have trembled the crypto space.
At the time of writing, Bitcoin price appeared to have stabilized to some extent and is heading towards the initial target at $38k. However, the bears may also be standing on their toes to jump in, with an opportunity or another FUD. However, BTC price in coming days may have a steady rally, lowering the volatility in coming days.