The last few days have brought back a familiar sentiment to the crypto market. And it is that, despite waiting for a stabilization in the price of Bitcoin and other crypto assets. In the last week the market has faced one of its hardest declines since the beginning of the last major Bitcoin bull rally. For this reason, investors prepare to buy Bitcoin before the recovery in its price.
The market collapse
For the oldest members of the crypto community, the drop in the price of major cryptocurrencies in recent days is nothing out of the ordinary. On the contrary, for many years, the spectacular falls and increases in the price of Bitcoin were part of the daily life of the market. Which is why the main crypto influencers are not surprised in these moments of price crisis.
However, today most investors in the crypto market are not former members of the community. If not, on the contrary, large institutional firms and small investors, which have entered the world of crypto assets in the last year to try to take advantage of the profits that this market offers. And now they fear the decline experienced by Bitcoin, falling from $ 60,000 to a low of $ 47,500 yesterday.
And it is that, although much of this collapse has been generated by excess leverage in the market. Which has led to massive sell-offs of positions for millions of dollars when Bitcoin and other cryptocurrencies began to fall. For new members of the community, there is always the fear that this is the ultimate collapse in the price of BTC, and that they may therefore lose their investments.
Investors ready to buy Bitcoin
Of course, this is not the position of most investors. In fact, at the moment several of the main investors in the crypto world are trying to calculate how much Bitcoin could fall. To buy it at the lowest possible price and take advantage of the subsequent momentum. A practice known as “buy the dip” or “buy the fall”, and that important analysts such as Peter Brandt would be following.
Thus, in Brandt’s case, the analyst would be expecting the price of Bitcoin to fall as low as $ 32,500, where he placed a buy order. Being in this sense one of the most pessimistic analysts today. Well, for most, the price of Bitcoin will not fall below $ 47,000, as analyst Peter Swift comments:
«I have also observed a lot of on-chain buying volume on the Blockchain around $ 47-49K, which I hope will act as a very strong support should we even hit those price levels. Furthermore, we continue to see large increases in the number of users on the Bitcoin Blockchain, which is also bullish. So even though there has been a lot of fear on social media this week, I don’t think there is a need to panic or be overly concerned about the price of Bitcoin right now.».
Therefore, for these analysts Bitcoin would only be taking a breather before returning to grow more strongly in the short and medium term. Which is why there would be no reason to panic at this point, and that explains why investors are preparing to buy more BTC.