Topic: Is there any good explanation to this dip (Read 350 times)

I feel like there is a lot of manipulation in that market and they will always manipulate it to there own favor. And since the whales hold a larger share of bitcoin they will always look for means to crash the market to too be able to buy more. And if the price should go up and the volume of selling is higher than that of the buying then it will affect the entire market and whales don't care much since they are  element of manipulation to the market. And with the situation of the price coming down will also help other buy. So when ever the price is down its beneficial to a lot of people. And after the dip then people will start to plan against there investments so the way you run it clear depends on you.

Whenever you see bear run in the market, you don't need to wait for people to tell you what to do at the moment when you have the money with you, which is the best period to buy BTC from the market and hodl for a brighter future to come.

 And bear season will continue happening in the crypto market and, whenever you see bull run and bear run in the market, learn how to take advantage of them to do the right thing that will bring good results that will make people to believe in your strategies in the community.

The value of any asset skyrockets when it attracts a large number of investors and large whales. Since cryptocurrencies are highly volatile as digital assets, Bitcoin is no exception. The arrival of large whales has boosted the value of Bitcoin, which can suddenly cause the market price to drop significantly after the whales sell. It can be a factor in normal erection. Since its price cannot be controlled, you should buy as slowly as possible so that your purchase price can come down significantly.
You can definitely consider investing in Bitcoin after going dip. Because devaluation is a natural way to adjust the value of Bitcoin.
     

Bro calm down, OP's pretty much just asking what could be the reason why it's dumped like that much over the past few days which is a valid question to inquire whether you're a "boy" as you put it or a "man".

Exactly, just cause bitcoin marinated on the 42k price point for too long doesn't make it any more immune against the tides of the market as the rest of the cryptocurrency market. It's pretty much still liable to follow market mechanics and its behavior regardless of its standing in the echelons. People's misconception against bitcoin makes them think it was this end all be all jesus of the crypto and financial world that they could use to maximize their earning potential with little to no risk involved. The reality couldn't be any farther from the truth. I reckon most people here who stuck until now have lost just as much money on the crypto industry as the biggest winners, if not more.

Understand that things like this are a regular wednesday thing for bitcoin and it would recover just as much as it would lose eventually.

If the market price of Bitcoin dips further, understand that this is another buying opportunity. Don't panic if the market dip. We always have to believe that after a market dip, it will pump again later. This always happens, when the market dips, it pumps up more. So don't panic and don't stop your holding in any way.

That’s the right answer, almost. Yes the price dropped because of the GBTC liquidation but people didn’t make this decision without a reason.

The thing is, GBTC shares were nearly 10% cheaper than the market prices. That means whoever sold their shares recently, have seen a ~10% jump in their GBTC net worth right after the ETF approval.

GBTC used to have its own independent pricing and now it is connected to the other ETF’s, they can’t manipulate the prices no more.

It seems that the answer has also been given by @Oshosondy and that is the basic cause so that the price pressure is very consecutive, similar to the FTX pattern during the crash some time ago if you look at it.

If you trade, of course you will be a bit surprised to see conditions like yesterday, the more you buy, the more the price goes down to the point that you have to sell below the price you bought previously to get the lowest price again. Of course, it really drains your energy and makes you feel dizzy if you control the price.

But why do we spend so much time looking for reasons why bitcoin increases or decreases when we can't change anything? In the financial market, increases and decreases are very normal, why are people always surprised when fluctuations occur? I don't understand why people are always running around trying to figure out why bitcoin is dropping in price. Instead, why don't we take advantage of buying DIP because it will probably recover very quickly and we will lose the opportunity to buy cheap?

You see, everyone wants to find a reason for why things happen. However, determining the cause of every dip is like chasing shadows. A pointless exercise that detracts from the bigger picture.

News can be useful or harmful. It affects investors' emotions and causes rash decisions. People hear something, panic, and sell-offs start. However, these reactions are usually transitory. Bitcoin's fundamentals remain unchanged. The first cryptocurrency has a strong network and rapid usage. Innovation and utility persist despite price fluctuations.

Look beyond the immediate troughs and peaks. I think Bitcoin is more than an asset - its a symbol of human inventiveness and decentralization. The road is bumpy and the dips scary. Remember that every dip has led to fresh growth and awareness. Bitcoin investing requires confidence and perseverance. A dip? Just part of the adventure, allowing opportunity to learn and strengthen our convictions.

There is some news that ETFs are selling bitcoin but I really don't care and I even hope they should sell all their bitcoin. And those who are panicking should also sell their bitcoins if they do not believe in bitcoin's recovery and price increase. For me, I see this as a good opportunity to accumulate more bitcoin for myself since I still have more than 30% USDT left in my wallet. I even hope that after the halving bitcoin will be able to drop to $25k again, although this is really unlikely, the more people expect bitcoin to rise sharply, the more I believe bitcoin will fall. Bitcoin always goes against the crowd's trend  .

The dropping of Bitcoin's price value in today's market is seen as an organic happening in selling and buying; I don't see any manipulation happening in the market today in terms of monitoring Bitcoin's price chart.

He is not like other cryptos in that when there is a fall in value, what happens in the market is not organic or natural. The majority of those who sold were traders who were not whalers, because the whale investors, from what I see, are just waiting for what is happening now and are just waiting to buy bitcoin, whereas the other whale investor institutions have already bought bitcoins and holdings.

Lots of people/traders/investors did really have those high hopes of that ETF approval on which it could really make the price would really be going up high but the market did make out the opposite directly. This is why it would really be that best that you should really be that having those back up plans if ever your initial analysis had failed out. There are people who are really that mindful when it comes directly on making
profits or making money and this is why they would really be that optimistic when it comes into their positions without having those kind of considerations when it comes to adjustments.

When it comes to dip when this is always been that part of the market on which it is really just that right that you should really be that making adjustments.Instead
on making yourself that being too confident with your position, it would be always that having plan B's or even C's and so on.
Make yourself that versatile then you should really be just that fine.

I read that so far Grayscale has sold almost 80 000 BTC worth as much as $3.27 billion, and the bad news is that they have more than 535 000 BTC. Regardless of the fact that some other funds may be buying a certain amount of BTC, I think that the supply is still significantly higher than the demand and that is why we are at -20% compared to the price that was ten days ago.

The only question is when Grayscale will stop selling, and as far as I can see, there are no indications that this will happen soon.

It is so pathetic patiently hodling a specific amount of Bitcoin for a period of time with an expectation to catch up with the ETF, accumulating so attractively in other to sell your coins in a huge appreciatable amount at the maximum extensive value rate in the Bitcoin markets, but reverse be the case while timing and aiming on the ETF approval, the markets value goes depressingly backwards.

Personally, I think the speculations in Bitcoin hodling and its investors rumours is playing unexpected underground entails technically affecting the ETF in the Bitcoin market.

However, Bitcoin is a volatility digital currency that its economical values is not determinable.

It's indeed disheartening to witness this downturn, and many, myself included, are searching for reasons behind it. It might be linked to various factors, perhaps undisclosed news. I'm inclined to think of it as an extended correction, hoping for a rebound. Surprisingly, even the approval of the BTC ETF didn't yield the expected results. Nevertheless, it's crucial not to succumb to panic, exercise patience, and anticipate a market recovery.

Yes, BlackRock is buying bitcoin at lower price so that they can move to the top of the list of corporates holding most numbers of Bitcoin. People at blackrocks top management suddenly decided about it and they are using their influence to manipulate the Bitcoin market to lower the price. Otherwise tell me how on earth, Bitcoins price is decreasing after the approval of long-awaited ETF. I don't see any other apparent reason.

No matter how the dip is, it can not go back to as low as $30k although cryptocurrency can not be predicted %100 but I believe it would not fall below $30. I don't really know why people do complain about Bitcoin dip. Dip is a normal language in cryptocurrency which means cryptocurrency is an ups and down market just like inflation makes price of fiat to change. False Rumour is also a great influence to market decline. Because when people start speculating on something which seem untrue, some investors become skeptic, because they don want to loos fund. As dey pull down their investment the market, the market receives a decline and many other factors. But it's just time to buy in bulk because now is the time for accumulate more.

The approval of ETFs will definitely increase the demand for bitcoin but you cannot expect it to happen immediately and massively, everything takes time. Regarding bitcoin being dumped when the ETF was approved, some people also made that prediction and gave everyone warnings, but most stubbornly did not believe it and expected the price to increase even more strongly. Therefore, most were disappointed when bitcoin did not increase in price as they expected, while those who believed in "buy rumors, sell news" were very satisfied with their decision.

But you're right, the market goes up or down sometimes for no reason at all and that's nothing to be afraid of. As long as we don't sell when the market dumps, we don't lose anything.

We never thought of experiencing the current situation as we think that ETF approval would increase demand yet, volatility seems to be more influential and it cuts the hype turning low again. Should we have to panic? No, instead buy more and get ready for the halving impact. I even see halving could drive more pumps than ETF approval.

We just calm down, the volatility of the market is real. It pumps for some reason unknowingly, the same thing happens when it dumps. But if we can hold, nothing we lose.

This is a nice visual aide you have here, I can only imagine the negative decline caused by the FTX crash as this chart isn't completely up to date but it does a nice job hitting all the major bear markets and notating their falls. We can only hope that this is just a healthy correction and I think that it is, hopefully we will see BTC make a huge jump towards upward momentum before and after the halving.

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!

To much hype happened on ETF and after the approval happen maybe there's a lot of people cashing out their profits and that maybe the result.

But also come to read this article since this also have relevance regarding on your question and maybe you can learn something from this https://u.today/key-reason-behind-bitcoin-btc-price-crash also this https://u.today/massive-200000-bitcoin-btc-dump-expected-in-60-days-mt-gox-update

If this is really happening well we can really expect a dump to happen so maybe its time to follow those good updates happening since it can give us good ideas on what will be the next thing to happen in the market.

People were hyping the ETF approval, and many were saying that Bitcoin price would increase significantly following the ETF approval. The price pumped a few thousand dollars, and then we see a sudden dump because more retail investors joined the party and allowed whales to empty their wallets. In the past 2 weeks, approximately 70k BTC were sold by whales worth around $3 Billion. The market will correct itself for the time being. The chances are that we might see a dip toward or below $35k in the coming weeks.

Bitcoin's price goes up and down for different reasons like news, market feeling and rules changing. Predicting the next dip is tricky but keeping an eye on news and trends helps.

Stuff like this sorts the men from the boys.

Expectation was built up in regards to this ETF decision and the price went up.

The decision was positive, so time for the men to take profits as all looks good.

Now just wait until all the boys panic and sell and then see where it bottoms out.

Then the men start buying again.....

I read that FTX liquidated $1 billion worth of GBTC has been the main reason for the price of bitcoin that fall.

Bitcoin spot ETF was approved on 10th January 2024. Bitcoin got to $49000 on the 11th of January 2024. The fall did not started in December of last year.

It's not a thing of surprise anymore to see bitcoin dip about 10 to 20% from its previous price of $48k on it's price within the late December to earlier January after hitting a good price, after which price started declining without control to the level of $38k as current price. Who knows what could be the next dip and this may lead to 35k to 30k causing serious panic to the market and holders, please any thing the cause of the dip as we know it's based on news.