Bitcoin Down By 40% From Its Highs, Is Next Stop $39,557 ? Will The Table Turn Bearish ?
The crypto market currently flowing with numerous market sentiments, where-in the slightest movement makes the biggest difference. While a notable move towards the north infuses the bullish sentiments within the crypto space.
At the same time, a minor retracement drags the greed and fear indicator towards the extreme fear levels close to 10.
However, while the Bitcoin price is undergoing a downtrend or a correction phase, is it the time to be extremely bearish with the market trend?
Definitely not, Bitcoin price rally usually undergoes major retracement each time it smashes its highs. The correction is much required for a healthy price rally as the new traders get an opportunity to enter the ring.
Else the well-settled and groomed traders shall continue to play within the crypto space. While currently, with a 40% drop the market sentiments turn extremely bearish, but the time to be bearish was when the BTC price was around $60K!
Bitcoin Price To Visit Lower Lows ?
Historically, a 42-43% drawdown is a good bounce area for Bitcoin.Many are turning bearish on BTC now, when the time to turn bearish was in the $60k's.Picking the bottom for where the retracement rally can begin is difficult. But, I'll take a long shot guess at it.$39,557 pic.twitter.com/T0cNHryBKR— Blockchain Backer (@BCBacker) January 8, 2022
The YouTuber, Blockchain Backer believes that the bearish phase was when Bitcoin was hovering around $60K. As each time the BTC price retraces more than 40%, it creates a good bounce area for the asset.
However, the YouTuber still sees the asset visiting the lower levels just below $40K. And very soon the asset could rebound as soon as it plunges just below $40K as it is one of the strongest liquidity areas.
Collectively, Bitcoin retracements are much required and the most integral part of the price rally. And hence if the price undergoes a notable dip, yet the market sentiments need to be a little stable and do not fall into extreme fear.
As the whales and the bulls always hunt for such an opportunity to accumulate the holding let off by the weak hands. Therefore, despite the BTC price being pretty bearish yet, the sentiments should be hopeful rather than being extremely bearish.Source