DoomRanger

A Retrospective: Bitcoin's biggest pullback of 2021

BITBAY:BTCUSDT   None
Hello traders, recently we have seen Bitcoin plunge along with all the other altcoins and I'm sure anyone left bag holding will be looking for answers.

We have all seen headlines about Elon Musk , China, Binance investigations, and various other "allegations"

Let me just give it to you straight, you can believe whatever you want. In my own non-expert opinion, Elon Musk cannot make the market move this drastically. If Elon really managed to convince every single person to buy his DOGE, BTC will be crashing and DOGE will be on the moon by now.

The fact is that Elon, China, even the Biden tax proposal are simply headlines, scapegoats.
People demand/need answers and the news will satisfy these people with whatever justification they can find.

Bitcoin plunged the past few days but look at the rally it has made this year. It's literally like a rocket to the moon, it may have reached it or it came crashing down, regardless, it's time to come back to earth.

The market has been overbought for months, in recent weeks, exuberance around BTC breaching new ATHs caused many traders to become overly bullish . Excessive leverage trading, immense greed, and weakening momentum in the uptrend of crypto are just some reasons why prices kept dropping.

In a market with high momentum, selling can beget selling just as easily as buying can lead to more buying. As retail investors we are reminded of the fact that prices can indeed go down and are not just a one-way rocket ship, you don't come and invest in crypto preparing to make massive gains with zero losses, investing in crypto coins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.

A market crash or correction can happen anytime especially in a volatile asset class like crypto. I believe when people start finding a good price to enter again when the market starts consolidating, we will see BTC rise again (not bounce right back up).

Right now, all we can do is do our own TA and realize how all of this makes sense, take a deep breath, find that opportunity and take it.

Disclaimer: Not financial advise, just my own dumb opinions.

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