The price of Bitcoin fell by 30% in a single daily candle. The dump is not yet over but very close to ending. The crash has been shaking a lot of investors lately and people have been asking "What exactly is the big money doing?".
Monday is usually quite shaky in the crypto market but January 11th, 2021 literally looked like doomsday. Bitcoin is suffering it's biggest daily drop in history, former Trump advisor even says that Bitcoin is like Amazon in the 2000s.
Bitcoin is never going to be the favorite daily child of Traditional economy because it goes against everything traditional economists believe in but despite this, Bank of America predicts a mother of all bubbles for Bitcoin.
Bitcoin peaked on a low just below $3,000 (USD) yesterday bringing Bitcoin to a dramatic loss that has not been seen since last week.
The good thing about the price reversal is that we can also find a bit of volume coming in, volume of that height has not been seen since March, 2020.
Bitcoin is even trying to get through the previous support of $35,000 (USD) which is now acting as a resistance.
$42,000 (USD) is definitely not going to be the peak price of BTC, it's going to keep rising, time is the only matter in question.
The ongoing dip is not unusual especially if we look at the 2017 Bull market (the graph above) and all the dips then were buying opportunities for BTC.
An individual has to be mentally prepared before going into this line of investment because of the dramatic dips that keep happening in the market. Just imagine how it will be when Bitcoin smashes into $100,000 (USD) and dips down to $75,000 (USD) , the internet will be on fire more than it was on Monday.
On the bright side, Bitcoin is still 75% above the 2017 all time high despite the drop. There were several reasons for this dip; investors were simply taking profits which is completely normal. Many traders would have been over leveraged so when liquidation starts happening, they tend to have a cascading effect with every liquidation, pushing the price down and creating a selling pressure. US Dollar also gained 1.4% of it's value back and this led to the crypto market going haywire.
None of what has happened is not a new thing for BTC and while some people were panic selling, the "Whales", the big money, were panic buying.
