Bitcoin (BTC) Tanks Another 4%, Here’s Why Starters Should Avoid “Buy The Dips”

Bhushan Akolkar Bitcoin News published January 13, 2021 | modified January 13, 2021

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Bitcoin (BTC) Tanks Another 4%, Here’s Why Starters Should Avoid “Buy The Dips”

As CoinGape predicted yesterday, Bitcoin (BTC) has finally entered another correction with exchange inflows and outflows showing no improvement over the previous day. At press time, Bitcoin (BTC) has corrected another 4% and is trading below $33,500 levels. If we see the Bitcoin daily chart, the BTC price corrected nearly 10% for the second time in a span of just 24-hours.

Courtesy: CoinMarketCap

Interestingly, Bitcoin has been showing similar behavior in the past as well! This goes on to explain why shorters should avoid the popular saying “buy the dips” every time Bitcoin drops. On-chain data provider Santiment explains that “avoid ‘buying the dips’ when the crowd consensus is to ‘buy the dips'”. Interestingly, being cautious and fearful can be good at times as an investor.

This is especially true for starters who are new to the game and who haven’t tasted the sour taste of Bitcoin volatility in the past. Bitcoin (BTC) inherently has been a volatile asset class and we must respect that! If we look at the long-term, Bitcoin (BTC) continues to surge above and beyond every time it enters a sharp correction.

On Tuesday, January 12, another $410 million in long positions for the Bitcoin (BTC) futures contracts were liquidated on Binance, the largest daily value liquidation to date.

It looks like the bulls have finally exhausted after weeks of continued institutional participation. It looks like the dust isn’t settled yet as BTC forms another bearish head-and-shoulder pattern on charts. This fresh flow of big capital can only take the BTC price back to $40,000 and above.

While Bitcoin price has corrected recently, its on-chain fundamentals like hash-rate and miner activity remain at an all-time high. The selling pressure from miners, who resorted to profit-booking, is pushing the price down at the moment.

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Bhushan Akolkar 382 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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