1. The overall market trends
The overall market trend for bitcoin has been showing glimpse of weakness as struggled to reclaim the 70k-73k price levels as shown in the monthly, weekly and daily charts below. Generally, altcoins have seen an average dip of almost -60%. The launch of Eth Etfs could spark the tone for the start an alt season as many anticipated.
2. Why we witnessed a big drop in market
The big drop we experienced in the market between 2nd and 5th August was largely influenced by long-term holders taking some profits, geopolitical issues, the crash of the Japanese stock market to historic lows since 1987. Data from Arkham intelligence shows that a lot of traders/investors sold all their coins but BlackRock, MicroStrategy, Grayscale and Fidelity didnât.
3. Add your prediction
Nobody can accurately predict the direction of the market. However, two scenarios could play out.
Scenario 1: If the price of holds Bitcoin above 57k, bitcoin could continue it quest to reclaim the 70k-73k levels and even hit a new ATH in the coming days.
Scenario 2: If the price of fails to hold above 57k and closes below 50k on the weekly chart, we could see a further correction to the 45k-48k levels followed by some sideways movements before price recovery.
4. what strategy someone can use to prevent from these market conditions.
In the crypto space, patience is not just a virtue but a strategy that could be very crucial at this time. So if you already hold crypto for the long term, just remember the basic market structure rule which states that; "Never sell on the lower low, Never buy on the higher high" and DCA for better cost basis. On the other hand, if you want to enter the market with the short term in mind, prioritize risk management and don't enter the market with all your ammunitions.
Note: don't forget to do your own research.
