Bitcoin Back At $21K After 75% Drop And Time To Buy The Bitcoin Dip?

This number is standard for a crypto bear market, Bitcoin is known for experiencing similar crashes in the past and could possibly suggest it has completed a new market cycle. At the time of writing, Bitcoin trades at $21,482 with a 4.1% profit in the past 24 hours.

Bitcoin is experiencing price relief in lower timeframes after the crypto market crashed to its 2020 levels. This pushed the cryptocurrency to a yearly low of $17,500, a 75% drop from its all-time high, and Ethereum to $870 an 82% drop from its all-time high.

Image from Tradingview on June2022

QCP Capital claims BTC’s price saw a positive reaction from the lows as it quickly managed to get above $20,000. In that sense, they believe the selling pressure that took BTC to $17,000 was “less leveraged liquidations and more miners reducing inventory”.

Liquidation from leveraged positions often leads to price consolidation as the assets take time to recover. In other words, BTC’s price is likely to continue up and less likely to stay in a specific price area, as it did in the past month when it was stuck at $28,600 and $31,500.

Time To Buy The Bitcoin Dip?

As NewsBTC reported, a decline in the price of commodities could suggest the U.S. Federal Reserve (FED) and its monetary policy are making an impact across global markets. Thus, reducing inflation and giving Bitcoin and other risk-on assets some breathing room, at least, for the short term.

After a 75% crash, Bitcoin is usually at attractive levels to increase long-term holding. However, investors should operate with caution and apply a dollar-cost average (DCA) strategy.


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