One of the most concerning questions today is why the pressure of selling Bitcoins and Ethereum is rising which is harnessing panic in the crypto community, although the demand for both coins is still massive.
Bitcoin and Ethereum, both have been returning to market conditions what they had acquired from it in 2021. With the passing of each day, the crypto economy, including Bitcoin and Ethereum, is reducing considerably. Yesterday, Bitcoin lost 3% of its value and 20% since last Monday. An unexpected surge of value however took place today which pushed Bitcoin’s value upward. At the time, Bitcoin’s market value is above US$ 36,000. For the time being, the value is looking good but it depends at what price day trading ends for Bitcoin.
For the past many days, day trading endings have not been good for Bitcoin. It has been losing values in between 3% to 6% on daily basis. Even today as well, Bitcoin value dropped below US$ 33,000 but rebounded after a short time. The present push is because of Bitcoin’s price breaking below the US$ 40,000 support level which is existing since 20th January 2022.
It wouldn’t be wrong to assume that Bitcoin has captured a new price threshold of US$ 34,000. To some this breakout could be deceptive considering that Bitcoin’s value is going up and down to that level for many days. To them Bitcoin bull is likely to happen in the month of July, 2022 and not before that.
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As regards Ethereum, the present market conditions of Ethereum are far worse than Bitcoin. Ethereum opened day trading today with a value decline of 8%. It then went back into the price range of US$ 2,172 which Ethereum hadn’t seen for the past 7 months. Examining the past 10-day movement of Ethereum, it can easily be ascertained that situation will likely remain bearish for Ethereum.
Meanwhile, panic is rising in the digital currency economy, especially for the holders of Bitcoin and Ethereum. To the contract, the demand for Bitcoin purchases hasn’t been declining. People are still interested in buying Bitcoin at a price which is slightly over US$ 30,000. They are taking the Bitcoin dip as an opportunity that they want to utilize in the long-term future. Those who have been panicking are actually those Bitcoiners who had acquired them for short-term investment purposes.
As a matter of fact, Bitcoin has been bought massively nowadays. Also, big Bitcoin whales had already disposed off their massive Bitcoin holdings in 2021. So there is a new set of purchasers for Bitcoin whose strategies are to buy Bitcoins on a long-term basis.
One set of new Bitcoin purchasers is those who believe that Bitcoin will become 100K worth of crypto in the near future. Therefore, buying Bitcoins at the time of dip makes more sense to them.