Bitcoin (BTC) is known for its volatility and recently fell more than $ 11,000 in four days after weeks of high prices. In the midst of a new bull cycle, Bitcoin has likely secured its fair share of new buyers, some of whom may not be aware of the huge fluctuations in assets, according to comments from Chads, a cryptocurrency trader and analyst on Twitter. Cheds is certified CMT level 1, a standard that demonstrates knowledge of technical analysis.
“With the recent rise in Bitcoin’s popularity, we have had many new investors and traders who have not experienced any trauma, such as the $ 8,500 daily light we just have,” Kids told Cointelegraph.
Bitcoin surpassed its constant high in 2017 in December 2020. Over the next few weeks, the asset doubled its previous high of around $ 20,000, and made $ 42,000 on Jan 8, according to TradingView.com. This is likely due in part to the fact that big players are buying traditional-backed bitcoins in the second half of 2020. Measurements from crypto data site The Tie show that the recent influx of retail money may also be a factor.
“True believers and anyone who understands the imbalance between supply and demand love these volatility events because they allow them to re-enter or increase previous positions,” Chides said.
“As institution building continues to grow and the active merchant fleet continues to shrink, Bitcoin’s bullish sentiment should continue and, in my opinion, all the dips should be cumulative.”
Other industry insiders point out that Bitcoin drops are common, pointing to a recent correction to help expectations.
Although Bitcoin has been synonymous with significant price fluctuations, its collections in excess of $ 20,000 have opened the door to higher dollar fluctuations.