Topic: Is there any good explanation to this dip - page 2. (Read 350 times)

This kind of price fluctuation is normal in the Bitcoin market.  This is simply a sign that during the ETF approval hype, Bitcoin is overbought, making the price of Bitcoin above its normal price.  Once the hype is over, it is obvious that correction will happen, the reason for the market price of Bitcoin to suddenly return to the "should be" market price.

Also, there are some instances where the price of Bitcoin plummeted before the halving so I do not think we really have to worry about the recent price drop of BTC.

This happening is a good sign that you should buy more bitcoin. It's like a correction in the bitcoin market; we can't expect that it's all about increasing in price. The crypto market should have a correction in order to have a balance in the market. and maybe many big investors sell their bitcoin for some reason, but this happening is having good benefits for us investors because it means that we could buy more bitcoin at a low price before the upcoming bull run.

But of course, you better watch out because the price dip might go further, so you better analyse the market when to buy coins in order your liquidity can sustain the down trade of the market. So take it easy. It may seem like a bad sign, but it's not. You can take advantage of the market dip and take the reward. It's up to you if you will take the risks.

Yes, I also said the same thing in another thread about it. I wouldn't have had the price go down like it has so far after the ETFs were approved but then thinking about it later it has to have been a case of these for sure. A lot of minnows sure bought after hearing about it from the news and are now panic selling.

There many explanations to the bitcoin price dip, but what I cannot guarantee you is whether the explanation is good or not. According to your thread title, you are seeking for a good explanation. Whenever there is an increase or decrease of bitcoin price, it is always associated with news or explanation to why it happened. It is believed that the price cannot just move on its own without a cause.
I have heard that the FTX GBTC liquidation is the reason behind the price dump as noted by Oshosondy;
I have also heard that because traders made so much profits during the pre ETF approval rumours and they have to sell. I do not believe such rumour that much because I think that many people were holding for the possible bill run.
I just know that there's definitely a manipulation to allow people who took profits to re-enter the market at a discounted price. I am not happy that as big as bitcoin, despite its market cap and price, it is still manipulatable. This is not a good thing for the king and the cryptocurrency market at large

I just pray that the arrival of the institutional traders on a legal form should somewhat bring stability in the market but it seems that the reverse would actually be the case because the signs from when ETF was approved till now is not actually a good one.

Yes, it's a healthy correction of 20% after going up by 200%. What else do you expect? If Bitcoin wants to reach much higher prices, it will have to get a correction.
People take their profits and go away, buyers come and price will start going up once again, Bitcoin Halving is also coming.

I have made a post for next Bitcoin move, go check it out.

With the etf approval many are now reaping the rewards of their investments

I believe a lot are already taking in profit however rather than panicking and thinking that this would cause damage we all should try to acquire bitcoin now that its price is declining rather than thinking this is a time of crisis, think that this is the time for an opportunity

Under $30k is plausible and everything is on this market. While we're not yet passing the halving, things could still be bad for those that don't have much patience.

It's a matter of how long we are going to stay and just ignore all of these dips and whenever these happens, only one thing is for sure and that is there have been a lot of Bitcoins loaded to the market and sold off.

That's how it goes whenever we're going through a bloody week.

What I can say is that the recent selloff seen in Bitcoin market shouldn't surprise us, only that it is moving faster than expected. I've lived in the market long enough to know that any market expectattions that fails could backfire and could cause a reverse trend, which is what is happening now. The ETF filing and expectations that caused Bitcoin to rise, when later got approved, is the same that causes it to fall now, this is because reality is different from speculation and optimism.

Then, it was the expectations and optimism that dragged the price of Bitcoin higher through FOMO, but it is moving on the opposite side now where it (Bitcoin) is viewed as overpriced. This, I'm afraid might last for a month, but hopefully, halving will change the narrative, I mean the post-halving effect. Technically, Bitcoin is bearish in outlook, it will continue to sell lower with little or no restrictions at all just like how we experienced it when it was buying late last year.

It has breached a strong support level at $40,243 and still has a strong price action before it, so it is likely that it will reach $37,519 in no time and even go lower than that.

You might want to read this: My recent technical view of Bitcoin

It doesn't matter what caused bitcoin to fall over the past few days, because no market has gone up continuously without falling, and bitcoin has risen so much in the past 2 months that a correction is completely understandable. Falling Bitcoin is a good thing because this is an opportunity to accumulate bitcoin at cheap prices, not a time for panic selling.

The truth will be quite harsh, but we should thank those who sell in panic because if they don't sell, how can we buy bitcoin at cheap prices? This is the financial market and it is very cruel, people with paper hands do not deserve to profit in this market. I prefer a panicked market to an overly calm market that doesn't make a profit.

People panic sell and still fearful to get in again. Price actually falls not only because of sellers but forced liquidations.

Cathie Wood and ARK invest sold to take profit weeks ago. Some institutional investors have to take profit, all or partial of their bitcoins, to show in their financial year end report that through 2023, they got profit from investment. Distribution on market by institutional investors usually take a long time to finish because they have big capital.

The market is always here and chances come and go but they will return so we don't have to feel like never see other chances. I agree with you that there will be other dips.

If this is what you have to ask about the price of Bitcoin, of course it will be interesting if you look at the history of what happened before the halving occurred in 2020, to be precise it happened on May 11, in the first to three months there was a sharp decline, exactly like what is happening now, what I say is based on experiences I have seen, of course you cannot be guided by what I say.

But I am sure that the current decline in Bitcoin prices, there must be things that lead to positive goals for Bitcoin itself, that's what we don't know yet, for me just think positively and hope that Bitcoin will be better in the crypto market in the future and have good value than Halvingthat has happened before.

Good explanation for the dip: More sellers then buyers :-)

Seriously, in addition to what others mentioned part of it is the post Christmas / beginning of the year gotta pay some bills thing.
If you are sitting on some BTC you bought over the last few years before the recent run up and sell now you are still made some profit and if you have things sitting on a credit card at who knows how high an interest rate. It's a win to sell now and see what happens later. Can always get back in on the next dip

-Dave

An easy and good explanation is "Buy the rumor, sell the news".

Rumor is Bitcoin Spot ETF applications will be approved.
News is SEC. approved 11 Bitcoin Spot ETFs.

If the market works like the advice, price must drop and it is what Bitcoin market actually goes latest days.

Another explanation is even without news about Bitcoin Spot ETFs, you can see Bitcoin already have four green months from September to December 2023.
https://cryptorank.io/price/bitcoin

If anyone think it is not enough for corrections, I don't have anything to argue.

A 10% or 20% correction is not too big if you see Bitcoin history.

Not every dip requires an explanation. Bitcoin is a volatile asset, its price can't be regulated and can't be controlled. The interest in buying and selling Bitcoin naturally fluctuates, and that causes the price to go up or down. There's also a phenomenon called a correction, which is a way of an asset's price adjusting after being overvalued due to hype or something like that. So what we see now is Bitcoin's correction. It will stop, Bitcoin can easily recover from that later, and it doesn't matter in the long run. A correction doesn't need triggers, it can happen naturally after growth.

this possibility is because most traders have made a profit from the bitcoin etf news, so now they are selling to secure their profits, and some may be selling because they are worried that the price of bitcoin will continue to decline so that it affects their psychology to sell their bitcoin.

but there is no need to panic, this is still normal, because looking at how bitcoin has performed in the last few weeks, it has risen significantly because many investors have entered just to make a profit on the bitcoin etf news and now they are leaving which makes the price of bitcoin drop and that is normal. and usually the price of bitcoin fluctuates before the halving, so a drop like this is not bad news.

praising ETFs will have an impact on bitcoin for me fomo does this. if ETFs don't dump bitcoin they probably don't have the term dump on bitcoin. create interesting news to bring an upward impact and sell bitcoin massively. made huge profits and they just wait for the bitcoin correction position to be below them to start again

It seems to me that we already in entering the Dip section already due to how the market is dropping down this past few days and the one that happen yesterday is one of it all breaking bitcoin price down to $38,700 as of when last I saw it yesterday and now we can’t even tell where the price will be next.

But this has not been the first time we are seeing or experiencing price drop on the halving year it look like something always happen which always end up bring the price of bitcoin down and at the same time creating lot of buying opportunity for those that want to buy and hold bitcoin.

This is just a normal correction that occurred after the hype over the approval of a bitcoin ETF, before that the market had an unexpected reaction, causing the price of bitcoin to continue to experience a sharp increase. When the price fell further, other people also panicked and sold their bitcoins, this incident was also exacerbated after bitcoin broke through the support point of $39,564 (weekly timeframe). To find out more about trusted bitcoin news, you can visit bitcoin news page on Tradingview.

Yes, it's very tough to predict the next move of Bitcoin and how much it will go down.  Last week, we saw that ETF was approved and the price of bitcoin went up to $49k but suddenly we saw some bad moves of BTC going down.  I did not realize what happened that bitcoin price goes down that much.  A few minutes ago I saw the price of btc on coinmarketcap which shows that the price is 11% down in the last 30 days.  This is a significant opportunity for those people who want to invest in Bitcoin.  Maybe the BTC goes down but it's not confirmed be BTC does a comeback and goes up which will not be a piece of good news for those who want to buy.  So do not lose this opportunity and make some investments.

first point: macro economic scenario, the market expected an interest rate cut for March, but now they believe that this will only happen in May or June.

second point: ETF speculation.

the sales pressure is ending, most of the futures contract orders have already been closed.

Bitcoin can fall to 35k, but to do so it needs to lose the 38k region.

in the medium and long term it is infinitely high, so take advantage of the opportunities that life is giving you. BUY!