Bitcoin made its reclaim with $50000 level on Tuesday, after the latest fall in the prices of the cryptocurrency that attracted buyers. In the meantime, the existing investors were holding onto their positions.
The biggest cryptocurrency in the world has hit an all-time high of $58640 on the 21st of February. However, the rally was looking a bit stretched as the prices fell to the low $43343 in the last week. However, the market has again started to recover from here, and the dip, which was seen from the past week, is probably going to end up as a blip in the bigger picture, according to Sathvik Vishwanath.
As per the blockchain data and the intelligent provider, Glassnode, during the correction creation for signature sideways and a very choppy kind of behavior, it looks like the buyers are going to step up soon. Also, a few of the HODLers are letting go of the coins from this cycle.
HODL stands for the “Hold on for Dear Life,” which is suggesting that one is holding on to cryptocurrencies despite the price dipping.
Glassnode said in a note that there is anecdotal and data-oriented evidence, which the market has seen with an influx of new retail investors. Bitcoin has moved with a wide range of $47099.06-$50249.01 from the past 24 hours. It is trading near $49084.73, up to 3.6%, as per reports.
From the last week, bitcoins have witnessed a large surge in the price for the first few days. It was the part of the hype cycle that got coupled with FOMO by the middle of the week.
Vishwanath said, “The dip was equivalent to what the industry gained in the last two weeks, but it was not strong enough to be called a dump in the market. As we have entered the last month of our financial year and we are expecting some people to do profit or loss booking to take advantage of paying income tax by negating their other sources of income to be loss of profit, respectively. Many people who had felt that they missed the bus when the price was about 20-30% lower than the peak now have a second opportunity to get in.”
In the meantime, ethereum, the second-biggest cryptocurrency in terms of market capitalization, is trading near $1571 up to 3.7%.