Bitcoin and Ethereum still on the dip
After another week of anticipation and trending the harsh tag #buythedip on Twitter and other platforms of discussions, things don’t seem to take the right direction. On the 23rd of May 2021, the price of Bitcoin went below $32,000. This dip marks a 50% retracement from the last high of $64,000.
Ethereum which went to new highs of $4,400 has retracement to below $2,000. This price was unexpected as the Ethereum family had anticipated bulls for a while and were aiming at $10,000. Ethereum co-founder Vitalik Buterin lost his billionaire status when the price of Ethereum when down.
Other cryptocurrencies are also facing the same trend. Binance BNB went to $290 after hitting prices above $550. The Dogecoin killer and Dogecoin have also been hard hit by the retracement. Dogecoin tested new highs of 72 cents has gone down to 30 cents. On the other hand, its current rival Shiba-Inu is not doing well after its price went down by over 2%.
ADA, Cardano’s native coin had a 50% decline in one week. Tether is also declining. Tether’s dip is due to some news that China gave concerning cryptocurrency in the council.
But everyone is buying the Dip!
The expectation was, since there are more buyers in the market, prices should start souring. Buying the dip doesn’t mean nothing else is happening. Elon Musk is Tweeting. When Elon Musk the CEO of Tesla and SpaceX tweets price shakeups are expected. When he tweeted that Tesla has stopped accepting crypto payment the price of Bitcoin went down by $2,000.
The Chinese government has also set new crypto laws. These laws stop institutions from adopting cryptocurrencies and they also warned people against crypto since there are no laws against it. The Chinese government placed restrictions on Bitcoin mining and retail trading. After the announcement Tether was being exchanged to RMB to avoid collateral damage as the report implements.
The US is also not safe. There are speculated regulations and tax hikes bringing uncertainty in the trade. The May 19th sell-off was expected to bring some sort of a crash to Bitcoin. However, analysts say it was a good proof of Bitcoin’s stability.
Traders have been ready for misfortunes. When fundamental news break, they shake the market a little but then they don’t crash it. Traders and analysts are advocating for HODL and buying the dip. They are seeing light even when things are not working out.
Tesla has by now lost all its profit. The $1.5 billion Bitcoin acquisition by Tesla happened when the prices were at around $34,000 so at the current price on 23rd Tesla was on the losing side. So why doesn’t Elon Musk come out to save his profits? Is he not seeing the loss he is about to incur?
Tesla announced that they haven’t sold their Bitcoin holdings and Elon Musk has threatened to move to invest in Dogecoin in some of his tweets. He is not moved by the way the prices are moving.
According to Cryptoslate, the question “should I sell my Bitcoin?” has moved to one of the most asked questions on Google in the past week after the announcement by China and how Huobi cut some of its services for fear of the regulations.
Should I sell my Bitcoin?
This question has no answer, you decide what you will do with your Bitcoin. If selling means you are incurring a loss then that is a wrong move. If you are the lucky ones who bought Bitcoin when its price was almost nothing and you feel you have accumulated enough profit then go ahead and sell.
Stop being an emotional trader. That is what most traders and analysts will tell you. Emotions will make you make decisions as per the current situation. But we are not telling you to HODL or sell look at your options and play your cards well. Please remember, cryptocurrencies are volatile and move with speculations. Invest with caution.