Hey guys, in this articles, we're going to discuss a recent seismic event. Wait, hold on, it's not an earthquake, it's the market shaking up.
So, in April, the month closed with a red candle, and Bitcoin's price took a dip to $56,000, marking one of the deepest and longest drawdowns. Now, some might wonder, is the Bull run canceled? The answer is no, it's not. Corrections are normal in a Bull market, as I've mentioned before. Even during the halving, Bitcoin's price wasn't expected to skyrocket; in fact, it might even drop due to the potential sell-off after the news.
So, what's next? In this artickels , we'll break it down into three sections.
Section 1: Why Did Bitcoin's Price Drop?
Firstly, there was the "sell the news" event. After the launch of the Hong Kong Spot ETF, Bitcoin surged to $65,000 before plummeting to $56,000, as anticipated. Additionally, the FOMC meeting and the trading volume of Bitcoin Hong Kong Spot ETF fell far short of expectations, causing market volatility and breaching Bitcoin's support at $60,000.
But things started to stabilize a bit after some insights from the FOMC meeting in May.
Section 2: Examining Charts
Now, let's delve into some charts. We'll discuss 12 of them:
Puell Multiple: Indicates selling pressure from miners. Currently, there's no significant selling pressure.
MVRV ZScore: Shows a mid-cycle correction, typical in the early to mid Bull run.
Reserve Risk: Indicates confidence among long-term Bitcoin holders.
NUPL: Reflects the psychological state of the market, currently in the belief zone.
Bitcoin Beam: Shows accumulation phase before a Mega Bull Run.
Total Market Cap: Suggests the crypto market is still below its fair value.
Bitcoin Fair Value Logarithmic Regression Band: Bitcoin's price is below its lower bound.
Bull Market Support Band: Bitcoin should stay above $55,000 to maintain the bull market.
Short-Term Bubble Risk: Indicates low risk of a bubble in the short term.
Stock-to-Flow: Still on track despite corrections.
Golden Ratio Multiplier: Bitcoin's price is within the potential Bull zone.
Bitcoin Rainbow: Currently in the buy and accumulation zone.
Section 3: Whale Actions
Lastly, let's look at some whale actions:
Michael J. Saylor's Orange Protocol: A decentralized ID running on Bitcoin.
Jack Dorsey's Block, Inc: Plans to buy 10% of gross profit worth of Bitcoin monthly.
Mr.100's Purchase: Recently acquired 3,900 Bitcoins.
In conclusion, despite the recent dip, it's not the end of the Bull run. It's just a pit stop before continuing the journey. So, consider dollar-cost averaging (DCA) to accumulate Bitcoin at a discounted price. And remember, stay bullish for the long term.
