The crypto market looks bloody today, with Bitcoin and the most important coins trading in the red.
Bitcoin fell about $1,000 in a few hours, and Coindesk notes that the last time that this happened was just after the crypto reached new ATHs after Dec 1.
At the moment of writing this article, BTC is trading in the red, and the coin is priced at $17,834.28.
The online publication mentioned above notes that according to Ki Young Ju, CEO of CryptoQuant, the availability of sizable amounts of BTC on exchanges provided by large holders aka whales contributed to the price drop.
“When it comes to short-term price prediction, I think the most important data is supply and demand,” said Ki Young Ju, CEO of CryptoQuant.
The fall in price started from whales
He continued and said: “I think this plummet was started from bitcoin…whales who wanted to keep their bitcoin on exchanges making them readily available for sell orders.”
Some other analysts also said that recent buyers took their winnings out of the market.
The same online publication mentioned Lucas Huang, head of growth at decentralized exchange Tokenlon, who noted that from a retail trading perspective, “an 80% increase in bitcoin price over only two months might be a profit too tempting not to take.”
It’s time to buy the dip
Other popular analysts and investors say that it’s time to buy the dip.
Are you buying the dip?
— The Wolf Of All Streets (@scottmelker) December 9, 2020
Someone said: “Unless you are a professional trader, I don’t see why you’d ever be in a position to “buy the dip”. Invest in one lump sum and forget about it, or dollar cost ave no matter the price.”
Another follower posted this message: “Yes this it’s a good opportunity for everyone, I think 17500 is on the table though, 4hour 200MA seems to like to bounce off that, but definitely a good time to DCA in slowly. IMO.”