As a seasoned crypto investor with a few battle scars from market volatility, I can’t help but feel a sense of deja vu reading Ki Young Ju’s recent post. I remember the rollercoaster ride that was 2021, where Bitcoin’s price soared and plunged like a yo-yo on steroids.
The value of Bitcoin (BTC) is dropping significantly. After experiencing an unprecedented surge in a bullish trend, reaching levels near the $100,000 resistance point, the market is currently undergoing a massive sell-off, leading to plummeting prices. This downward spiral has sparked a comment from Ki Young Ju, CEO of CryptoQuant, an analytical platform focusing on blockchain data.
Lessons from 2021 on nature of Bitcoin’s volatility
On X’s post, Young Ju emphasizes the characteristic bull market phase that Bitcoin is undergoing right now. This post serves as a reminder to Bitcoin investors about the historical behavior of markets in similar circumstances and their anticipated trends.
In a steep upward trend, like a parabolic bull run, Bitcoin may experience drops of around 30%.
— Ki Young Ju (@ki_young_ju) November 26, 2024
In a recent discussion, Young Ju highlighted the remarkable surge of Bitcoin in 2021, where its value climbed from approximately $17,000 to $64,000. However, he also pointed out that this bull run was punctuated by significant corrections, with price drops reaching around 30%.
He noted that this remains a natural part of Bitcoin’s price movement, even during an upward trend.
According to the CEO of CryptoQuant, the information he shared should not be misconstrued as a prediction for an upcoming price adjustment in Bitcoin. Instead, it is simply an observation about the volatile nature of the Bitcoin market. It’s essential to understand that such market fluctuations, including pullbacks or corrections, are normal and can occur even when prices are increasing.
Managing risks in bullish market
Instead of panicking, Young Ju urged investors to carefully manage their risks. This implies that they should resist selling off in response to short-term drops, as these are frequently misinterpreted as signs of a bear market’s conclusion.
Young Ju terms it the “locally rooted opportunity base,” suggesting potential benefits for individuals with a long-term outlook.
Despite Young Ju’s belief that Bitcoin is currently in an upward trend, it’s important to note that within the past day, the value of BTC has decreased by 4.94%, now standing at approximately $93,743.31.
Initially, the coin dropped down to $92,410 during previous trades. However, these ups and downs haven’t deterred investors, as evidenced by a 54.20% increase in trading volume, which now stands at $88.72 billion, suggesting that many still believe in the coin’s future prospects.
Consequently, these ups and downs have led some investors to feel anxious and sell their holdings in an attempt to reduce possible losses if the price continues to fall.
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2024-11-26 16:48