The price fluctuation in cryptocurrency market shocks its community every once in a while, especially when Bitcoin drops. Following last week’s downtrend, the crypto market incurred a loss of $8 billion within a week. Though Bitcoin BTC/USD fell steeply from its mark of $11,000 to $10, 250. Ethereum that was trading above $400 ended up at $320.
Such devastation in the crypto market also signals to buy low, Buying Bitcoin can turn out to be a good investment opportunity as it seems to be forming a new bullish run.
After the sudden downfall, cryptocurrency analyst Nicholas Merten said:
“The DEXes have been probably the clearest indicator that we were due for a correction. We were due for a correction ever since January where we almost had, not exactly, but anywhere from around 7.5 to 10x on a lot of these major altcoin plays. It tends to happen when you get valuations too exceedingly high.”
The majority of traders started being skeptical about the cryptocurrencies and Bitcoin after a deep price rejection. Merten reminding his companions said the cryptocurrency market is known for its unpredictable nature:
“This is not the time to be panicking. This is the kind of price action we see and look for discounts in the market… I just averaged into ETH the other day. So I’m going to be continuing to stack into crypto positions that I think are good here. I don’t get caught in the FUD and I think especially for those who have been around, you know what I’m talking about. This happens all the time in crypto markets.”
Bitcoin’s outlook remains strong amid the recent pullback
Highlighting the fact that Bitcoin’s long-term outlook seems intense, Merten added:
“Chart doesn’t look that bad. What it looks like to me so far is that we’ve been able to take this crazy downward trend that usually doesn’t happen. But again we don’t usually have these kinds of crazy parabolic trends, where we, three times in the past, got rejected here at this price range ($10,000) after breaking into support. We have now turned it into support and we’ve got a chance to possibly set in a double bottom here to prove that this is new support.”
Even though, the cryptocurrency market has noticed a massive downtrend. Merten suggests his fellow traders not create redundant panic around the cryptocurrency market.
“Quite frankly guys, from what we’re seeing here with the actual inflows of capital from companies like MicroStrategy. In this case, Grayscale, there is a lot more institutional demand or corporate demand for Bitcoin. In this case, that’s going to probably keep it up as an asset, and that’s not going to allow the market cap to go down. So long as there is not a massive outflow of Bitcoin, there will likely not be massive outflows of the total crypto market.”
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