Reasons for the fall of Bitcoin in August 2024: is it a crash or a correction?
The cryptocurrency market has always been considered the most volatile segment of the financial market, but every day the trend brings new surprises.
Just a month ago, we experienced the fall of the leading cryptocurrency Bitcoin to a minimum of 55,900, and now, with the beginning of August 2024, a new minimum has been formed at a level below 51,000 dollars per coin.
Traditionally, the cryptocurrency market has been gripped by panic; many investors are trying to get rid of assets that are falling in price.
What to do in this situation - sell at a loss or, conversely, buy coins at the best price?
Collapse or another correction of cryptocurrencies?
After the top cryptocurrency lost 20% of its value in just 5 days in August, it seems like a crash is imminent, but what are the reasons for the collapse of the cryptocurrency market?
To understand that the situation is not so critical, you should first analyze the history of Bitcoin price movements:
As you can see, the current situation today is far from new; we already observed a similar scenario at the end of 2021, when in a couple of days Bitcoin fell from $57,400 to $41,500, that is, the drop in two days was about 38%.
That is, nothing out of the ordinary has happened yet, and the scenario with the price falling is quite typical for Bitcoin; there have been worse times.
Perhaps there is a special reason for the fall now?
If you analyze the current news feed , you will not find any compelling reasons for Bitcoin to fall.
It is increasingly reminiscent of a game of bears who are trying to cause a downward trend and play bearishly.
Perhaps one of the major players is trying to bring down the price for the subsequent purchase of cryptocurrency at the most favorable price.
There is a high probability that the price of Bitcoin will fall below $50,000, but will eventually still go up and form a new high. Since there are still much more real reasons for growth than for fall, and the current downward trend is artificial.
Therefore, there is no need to panic, but rather use the advantageous moment to increase your investments in cryptocurrencies.
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