A Dose of Hopium: Why This Bitcoin Crash Might Be Temporary

DJ CryptoMan

DJ CryptoMan

— 1 min read
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The last couple of days have been quite dramatic for the faint-hearted...

📉 Here’s a little dose of hopium for you.

Let’s look back at April 2021: BTC hit a new ATH of $64,837. Just two months later, we saw a local bottom of $28,809 - a minus 55% crash from the peak. There were screams, "Bitcoin is dead" eulogies, and pure despair... only for it to smash a new ATH around $69k five months later.

My take on the current situation:
I believe we’ve finished dropping for now (at least for the next month). This crash was way too sharp and deep, happening essentially out of nowhere. It’s time for a correction.

Whether this is just a relief rally before a further decline or a repeat of the 2021 scenario depends on several factors:

  • The actions of the new Fed Chair.
  • Whether Trump tries to boost Republican ratings ahead of the midterms (read: print money to make everyone "happy and rich").
  • The resolution of the Iran situation.

I don’t have a crystal ball 🔮, so we’ll just have to see what happens.

My positions:
For now, I’m betting on a bounce. I even opened a futures position yesterday, though my timing was a bit off - entered at $66,975. I’m planning to close it around $76k-$77k.

Long-term, I remain a bear. If the price breaks $100k, I’ll sell the portion intended for sale (which has been on hold since November).

Bot update:
As for @KAS_USDT_BOT, yesterday and today have been the most active days for Bitcoin in the bot's entire history! 🔥 Kaspa is currently on pause and fully in coins.

P.S. I haven’t posted the January results yet - I’ll fix that shortly!

Originally posted on Telegram channel.

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