- Bitcoin has continued to trade lower and some analysts are even calling $25,000 as the next level, so is this the time to buy the dip, hodl or cash out?
- Two experts have had their say on the current market, including why Bitcoin seems unable to break out, where the smart money is headed and what’s next for BTC.
Bitcoin is trading at $33,330 at press time, down by over 15 percent in the past seven days. This is enough to worry investors, but JPMorgan analysts believe that it’s only going to get worse soon. Institutional BTC products continue to see funds outflow, China is cracking down even harder, BTC just formed the death cross – overall, Bitcoin isn’t in the best position. So, is it time to cash out before it’s too late, or maybe HODL hard, or should you buy the dip?
Since hitting its all-time high just short of $65,000, Bitcoin has now lost close to half its value. In the past week, the crypto has ranged between a high of $40,600 and $29,300. Its trading volume has also taken a hit, noting a 46 percent drop in the past day to $33 billion.
According to one renowned analyst, this drop is not only normal for an asset as volatile as BTC, but also expected given how quickly it shot up in the first four months of the year.
Michaël van de Poppe, an analyst and trader from the Netherlands, with over 100,000 subscribers on his YouTube channel, told VICE, “Bitcoin has seen a run from $3,750 to $64,000 in a relatively short period of time, through which a corrective move was likely to happen.”
Is this the time to panic?
Van de Poppe admits that even he is surprised at just how big the BTC price drop has been. This drop has coincided with bearish news such as China’s crackdown, and become even bigger.
Mati Greenspan agrees, but according to him, it all depends on when you got into Bitcoin. Greenspan is the former senior market analyst at eToro. He told VICE:
It always depends on where you’re measuring from. f you’re measuring from the high, then yeah – this is pretty brutal. But anyone who’s been in the market for more than a few months should be in profit at this point.
So is this the time to panic? Not to Greenspan, who remarked, “There’s never any reason to panic, as long as you’ve investing responsibly. There’s the disclaimer: never invest more than you can afford to lose.”
Van de Poppe also believes that selling now would be the wrong move. In fact, he believes that this is the best time to double down and buy more – buying the dip as crypto investors call it.
The time to sell for an investor or swing trader, that’s way behind us. It’s time to hold, zoom out, maybe invest some more if you have the ability to do so, and focus on data.
Greenspan concurs. The economist, who served at eToro for over seven years, advised investors to be patient and not panic despite the bearish conditions.
The point of investing, in general, boils down to four simple words: buy low, sell high. So when you see prices come down like this, to me that’s an encouraging sign to increase activities and investment.