The fall in Bitcoin and Ethereum prices caused panic in some investors. Some investors see the drop in prices as an opportunity to buy from the bottom.. At this stage, a serious dilemma arises for investors.
The biggest dilemma of Bitcoin and Ethereum investors!
Bitcoin 20 thousand in 2017-2018 period Dropped as much as $3,000 after seeing the top of the dollar. Bitcoin double bottomed in 2018 and 2020. The Corona Epidemic was effective in the second bottom.
In the chart below, we see the change in Bitcoin prices between 2011 and 2020.
Bitcoin $64,840 on April 14, 2021 broke the all-time record. After reaching its peak value, Bitcoin entered a downward trend again, as in the 2017-2018 period.. In the chart below, we see the price movements in the 2020-2021 period.
On May 19, Bitcoin saw a bottom value of 30 thousand dollars and a bottom value was formed.. At this point, Bitcoin investors are in a dilemma: Will there be a new bottom in Bitcoin or have we seen the bottom!
At this point, some investors are trying to fill the bottom by taking risks.. The number of investors who take risks in this way is not to be underestimated.
Please See: The biggest obstacle to Bitcoin and cryptocurrencies!
Philip Gradwell, one of the chief economists of Chainalysis, shared very important data and announced that 77,000 Bitcoin purchases were made in the last week alone.. In other words, 3 billion dollars worth of Bitcoin was bought for less than 40 thousand dollars.. Bitcoin investors who invested in this period undoubtedly think that the bottom is seen in Bitcoin prices.
However, the following data is more interesting:
1.2 million Bitcoins, considering the loss of 5% to 25% sold. In other words, this ratio shows us the size of panic sales.. According to other important data shared by Gradwell, there is a 25% or more loss in 120,000 Bitcoins.
Similar panic sales are also in question for Ethereum! 22.6 million Ethereum units were sold at a loss of 5% to 25%.
Source