Bitcoin bulls completely unperturbed despite the $2,500 decline – this is the reason
Bitcoin is facing a sharp correction after reaching Wednesday’s highs of $19,600 – the highest level at which the crypto currency has been traded since its highs in late 2017. The coin is currently quoted at $16,900, and early Thursday morning it fell to $16,300 on some exchanges.
The correction was not entirely unpredictable: As previously reported, the trader who had predicted Bitcoin’s movement over $18,000 also began to build a short position.
The trader comments that BTC by Crypto Investor has fallen below the main parabolic uptrend supports – which in the crypto currency market often means that the market is experiencing a sharp correction.
There have also been signs that the market has overtaken itself in terms of sentiment.
Alex Fiskum, an Alice Capital employee, recently shared the chart below. The chart shows the positioning and sentiment of traders in the Bitcoin market. As Fiskum shows, the market looked very similar to how it behaved during the 2019 highs and just before the 2017 all-time highs.
Despite the correction and the fact that the market shows no signs of a complete reversal, the bulls remain convinced of Bitcoin’s long-term forecast.
Investors remain bullish despite the decline in Bitcoin’s price
Many investors remain bullish against the leading crypto currency despite the sharp drop of more than USD 2,500.
Robert Kiyosaki, the prominent entrepreneur behind the book “Rich Dad Poor Dad”, comments that “big times lie ahead for” scarce assets such as Bitcoin and gold.
“Bitcoin flies to the moon. Great news. Gold and silver are going under. Even better news. Opportunity to buy, especially silver. When gold reaches $1750 and silver reaches $19.00, you go back. Be on your guard. We have great times ahead for gold, silver and Bitcoin. Be careful.”
Kiyosaki believes that the mass printing of money caused by the pandemic will lead to widespread devaluation of Fiat money, which will push BTC and other non-growthable assets much higher than they are now.
It is important to stress that strong corrections are normal in bull markets
Bob Loukas, a long-time Bitcoin investor known for predicting the macro-cycles of coins, wrote the following on Twitter after the fall:
“Most people have a short memory. Remember, in January 2017 just before Bitcoin’s all-time high, boom 34% correction. 2 months later a sharp rally, new ATHs, and double boom 34% decline. Never a one-way street.”
Antoni Trenchev, managing partner and co-founder of Nexo, expressed similar sentiments.
Trenchev believes that “any healthy market must have retreats and phases of consolidation before further rallies”.
It is unclear when the sell-off at BTC will slow down in the near future. But assuming that Krypto remains Krypto, a strong rally could follow, surpassing the recent one once the market finally stabilises.