Bitcoin correction happened. The current ATH is around $ 58,200. For the first time since September 2020, the “buy the dip” signal flashed green on the chart, which could theoretically signal the end of the correction. However, a historically red March is ahead of us.
Healthy correction ?!
Since its ATH, created by Bitcoin on February 21, there has been an approximately 25% correction. As for the causes of the correction, as confirmed by some analysts, the miners sold in particular. However, we also have indicators that the current fall in prices could potentially prolong the bull market, respectively. create a healthy cooling and springboard for further growth.
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“It’s a whale war, and you know who gained real power,” said Ki Young Ju, who also added a brief account of which whales they now sell and which they buy:
“Buy the dip” signal after Bitcoin correction?
The cryptanalytic company Glassnode states that the “Bitcoin Spent Output Profit Ratio (SOPR)” indicator has undergone a “complete reset.” This indicator essentially indicates whether the bitcoin outputs are in the positive or negative at the time of the transaction. The metric became negative for the first time since September 2020. In other words, the bitcoins that investors are now moving are, on average, a modest loss, which, according to Glassnode, suggests that profit-taking has disappeared.
The metric was also commented on by the popular businessman Philip Swift, co-founder of the Decentrader business set and creator of the Golden Ratio multiplication method. He stated: “SOPR is now being reset (green in the graph), which means that wallet sellers are now selling at a loss. This is a strong “buy the dip” signal in the bull market. This, along with resetting financial derivatives, is bullish. ” So was this the first Bitcoin correction after a long time?
Historically red March
However, many traders are cautious, also due to the fact that March is considered a historically red month. Specifically, in March, the price of Bitcoin fell by 15-60% between 2015, 2016, 2017, 2018 and 2020. As for the support that could support us, Willy Woo says that the level of $ 45,000 is very strong support and expects that any falls below this level will be aggressively redeemed.
Conclusion on Bitcoins correction
Although Bitcoin needs correction on the way up, it is also true that few traders can usually recognize the beginning of a long-term downtrend. Those who remember the end of 2017 know that at that time most expected growth to continue, and at the same time those who were already expecting a decline expected it from $ 10,000 and possibly longer. That is why it is necessary to take all the indicators and opinions mentioned in the article with caution.
It is no exception that Bitcoin will do something, almost no one expected. From now on, it is probably true that the chances of further growth above the current ATH are approximately the same as that we will enter the long-term bear market tomorrow – ie 50/50. several painful long-term downtrends. This is also the reason why HODL is not for everyone and why not everyone earns on Bitcoin.