Bitcoin Keeps Crashing – Time To Be Nervous?

Fortunately, however, the price recovered to $40k for about a week, and then it dropped back down to a support level at $33.5k.

Support Level Seems Strong

Over the past few days, however, the price has seen a bit of a recovery to $37,000, currently sitting at $37,349 at the time of writing. So, what happens next? Is it time to get nervous, cut your losses, and sell?

Well, no. For several reasons. First of all, selling now would only contribute to the bear market, and the price would continue to fall, which is not good for anyone. Secondly — come on. It’s Bitcoin. We all know that it will bounce back up, sooner or later. It’s what Bitcoin does.

Of course, there are many people who are new to the crypto industry, so they panicked a bit when the crash came along, and oversale did the rest. Those more experienced are actually quite glad to see this drop, as Bitcoin has shown them how high it is capable of going. So, these people — including institutions — will absolutely buy the dip and wait for the price to skyrocket again.

Are We About to Hit Crypto Winter?

Now, in the past, BTC prices crashed down from $20k to $3.5k, during the great crypto winter. What guarantee do we have that it won’t happen again? Well, I cannot promise that it won’t, but I can say that it shouldn’t. This is my own opinion, but I think that the involvement of institutional investors was a turning point that may or may not have broken the crypto cycle that Bitcoin has been following before.

With institutional investors involved, no one really fears that Bitcoin may actually be a bubble after all and that this drop will be the last one, and all those same old stories that skeptical media outlets tend to publish whenever the price dips.

In essence, the crypto market is alive, and coins are still looking for their prices, including BTC. Yes, we had a massive drop right now, but just look at the YTD or 1Y charts on CoinMarketCap. They are still in the green, and BTC is miles above where it was one year ago. So don’t panic. Listen to the market, and try to take advantage of new developments, whatever they may be.

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