Let me break down the analysis of BTC price without using a chart.
Imagine knowing that something will be worth $100k in a few months, but the current price is $64k.
If you get a chance to buy it at $50k, would you wait for it to drop to $35k? Probably not. At most, you might wait until it hits $46k, but people will likely rush to buy at such a low price. So, there’s a slim chance that BTC will ever touch $35k.
Do you really think major players like MS and BR, who bought BTC at an average of $55k-$65k, would sell at $45k? The answer is no.
Now, if you’re trading with futures or leverage, you need to be more cautious. If you believe holding onto your position could ruin you, then it might be wise to close the trade. Sometimes, taking a small loss is necessary for bigger gains.
I’ve mentioned before that one of the dumbest things to say is, “You won’t lose anything if you don’t sell.” This statement doesn’t apply when trading with leverage.
For long-term holders or short-term spot traders, these price fluctuations are less concerning. Short-term holders know that if they stay patient, the price will eventually return to $70k, whether ittakes a few days or a couple of months.
Long-term holders, on the other hand, are in it for the long haul, planning to hold onto their crypto for at least five years. They believe BTC is the future global currency, especially as the USD is gradually losing its value.