Bitcoin Market Update: Uncertainty Looms as Bearish Patterns Persist https://t.co/xyYjgMozBh
— Bitcoin.com News (@BTCTN) May 1, 2024
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Many investors are panicking and dumping their Bitcoins!
Fri 03 May 2024 ▪
3
min read ▪ by
Getting informed
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Trading
They couldn’t resist the volatility of the bitcoin price. They had entered the markets at the beginning of the year, enticed by the cryptocurrency’s historic peak. Holding 2024 bitcoins for just a few months, they gave in to panic amidst the market crash and sold their BTC at a loss. In this climate of FUD, experts explain why prices are collapsing and offer reassurance.
The bitcoin bull market is not over, according to Glassnode
Hit by a massive correction that has lasted for weeks, the bitcoin price continues to collapse. Data collected by Glassnode reveals that holders of 2024 BTC who entered the bull market are selling their cryptocurrency in a panic, while prices are down.
In a newsletter published this Wednesday, May 1st, James Check, senior analyst at Glassnode, notes that “recent buyers are statistically the most likely to panic.”
Indeed, these new holders need bitcoin to be above $59,600 to start making a profit on their crypto investment. Unfortunately, the current decline has driven the bitcoin price below the base price at which these new holders bought it.
As James Check points out, many bitcoin holders are currently ‘underwater’, meaning below the breakeven point. It’s understandable that they’ve panicked and sold their cryptos at a loss.
“It is normal for the bitcoin market to collapse for a while”
According to on-chain data, realized losses on bitcoin sales have increased over the past two months with the cryptocurrency’s high volatility. While acknowledging that the rapid descent of bitcoin is a bearish sign, James Check also clarifies that it’s not an indication of the end of the bull market.
The analyst puts previous rises into perspective and points out that bitcoin hasn’t experienced a significant pullback for a long time. Indeed, since 2022, the crypto has not seen its price drop more than 20% from its peaks. Yet, other bull markets have repeatedly recorded drops ranging from 20% to 30%.
Therefore, it’s not particularly surprising that the mother cryptocurrency’s prices crash for some time. But when you consider that the bull market might not be over, selling at a loss is certainly not a good idea right now.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.