How Are People Reacting To Bitcoin Crash Of 2021?

How Are People Reacting To Bitcoin Crash Of 2021?

           With the current crash in price of BTC, it has created a dilemma among traders, on being bullish or not. Many articles claim BTC has not bottomed yet, it's gonna crash $20k, and many advising to sell BTC.

If we look at the market carefully it's clear that BTC bounces back after $40k over a month. BTC keeping its resistance level at $40k as more chance of being bullish once it breaks the $40k barrier. In the same way, we may also expect a bearish market after dropping below $30k.

Short Term Traders

           These are the traders who would make a small investment and hope for a profit in a short period of time say about 1 week/month. A few months back seeing the rise in crypto market many of these short term traders entered the market, unfortunately with the current crash many of them began selling their BTC at a loss.

These traders bought BTC during its higher price range, thinking BTC would go further for an upward run. But with the crash, they began to start selling.

Some articles claim over $1.2m worth BTC has been sold by the short-term traders at a loss.

Some traders are distributing their investment in bitcoin to various cryptocurrencies that run against the BTC trend.

Long Term Traders

           Long-term traders would invest and wait for their price to increase over years. The current crash has provided many long-term investors to enter the market.

The long-term traders/holders keep holding their BTC, waiting for the rise. Some are being bullish and starting to accumulate.

Accumulators

           The Accumulators are starting to buy more and more BTC, as they see this crash as a discount of BTC price. Most of the miners now are beginning to accumulate their rewards and waiting for the bull run.

Conclusion

          The Bitcoin crash of 2021 has created these 3 supply trends in the current scenario. This crash has turned the BTC market into a battleground between bulls and bears. Let's suppose that Bitcoin hasn't bottomed yet, even in this case it's clear that after hitting it's low, anyways it's gonna strike back up much harder again. All you need to do now is BUY the dip and HODL.